The determinants of non-tariff barriers: the role of WTO membership

With the formation of the WTO/GaTT, a substantial reduction of tariff barriers (TBs) was achieved, but many countries then tried to use more non-tariff barriers (nTBs) to achieve new trade protection. To date, about two-thirds of the countries in the world are members of WTO. This study aims to fi...

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Main Authors: Lee, Chin, Che Rusli, Ahmad Khusyairi
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2015
Online Access:http://psasir.upm.edu.my/id/eprint/35649/1/plugin-8.%2520The%2520Determinants%2520of%2520Non-Tariff%2520Barriers.pdf
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author Lee, Chin
Che Rusli, Ahmad Khusyairi
author_facet Lee, Chin
Che Rusli, Ahmad Khusyairi
author_sort Lee, Chin
collection UPM
description With the formation of the WTO/GaTT, a substantial reduction of tariff barriers (TBs) was achieved, but many countries then tried to use more non-tariff barriers (nTBs) to achieve new trade protection. To date, about two-thirds of the countries in the world are members of WTO. This study aims to find the determinants of NTBs and ascertain whether the accession as a member of WTO can actually reduce the use of nTBs. The results indicate that WTO membership, tariff and unemployment exert a strong influence on the incidence of NTBs, while the exchange rate, political institution and economic size are not significant factors. In addition, tariffs and NTBs are complementary. The finding also reveals that WTO member use NTBs to a lesser degree than do non-members of the WTO. hence, we can conclude that accession to membership in the WTO reduces the use of nTBs.
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spelling upm.eprints-356492016-02-24T03:35:14Z http://psasir.upm.edu.my/id/eprint/35649/ The determinants of non-tariff barriers: the role of WTO membership Lee, Chin Che Rusli, Ahmad Khusyairi With the formation of the WTO/GaTT, a substantial reduction of tariff barriers (TBs) was achieved, but many countries then tried to use more non-tariff barriers (nTBs) to achieve new trade protection. To date, about two-thirds of the countries in the world are members of WTO. This study aims to find the determinants of NTBs and ascertain whether the accession as a member of WTO can actually reduce the use of nTBs. The results indicate that WTO membership, tariff and unemployment exert a strong influence on the incidence of NTBs, while the exchange rate, political institution and economic size are not significant factors. In addition, tariffs and NTBs are complementary. The finding also reveals that WTO member use NTBs to a lesser degree than do non-members of the WTO. hence, we can conclude that accession to membership in the WTO reduces the use of nTBs. Faculty of Economics and Management, Universiti Putra Malaysia 2015 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/35649/1/plugin-8.%2520The%2520Determinants%2520of%2520Non-Tariff%2520Barriers.pdf Lee, Chin and Che Rusli, Ahmad Khusyairi (2015) The determinants of non-tariff barriers: the role of WTO membership. International Journal of Economics and Management, 9 (1). pp. 155-175. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol9no1/8.%20The%20Determinants%20of%20Non-Tariff%20Barriers.pdf
spellingShingle Lee, Chin
Che Rusli, Ahmad Khusyairi
The determinants of non-tariff barriers: the role of WTO membership
title The determinants of non-tariff barriers: the role of WTO membership
title_full The determinants of non-tariff barriers: the role of WTO membership
title_fullStr The determinants of non-tariff barriers: the role of WTO membership
title_full_unstemmed The determinants of non-tariff barriers: the role of WTO membership
title_short The determinants of non-tariff barriers: the role of WTO membership
title_sort determinants of non tariff barriers the role of wto membership
url http://psasir.upm.edu.my/id/eprint/35649/1/plugin-8.%2520The%2520Determinants%2520of%2520Non-Tariff%2520Barriers.pdf
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