Estimating the Impacts of Non-Tariff Measures in the Indian Ocean Rim Association

In recent years, the Indian Ocean Rim Association has witnessed an increasing trend in the use of non-tariff measures (NTMs). This study evaluated the impact of NTMs in the Indian Ocean Rim Association through estimations of their ad valorem equivalents at the HS chapter and country levels. A gravit...

Full description

Saved in:
Bibliographic Details
Published in:Sustainability 2022-01, Vol.14 (1), p.68
Main Authors: Akintola, Abdallah, Boughanmi, Houcine, Antimiani, Alessandro, Zaibet, Lokman, Kotagama, Hemesiri
Format: Article
Language:English
Subjects:
Cooperation
Economic development
Elasticity of demand
Endowment
Handicrafts
Imports
International trade
Reforming
Regionalism
Sustainability
Sustainable development
Tariffs
Trade
Trade agreements
Trade liberalization
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In recent years, the Indian Ocean Rim Association has witnessed an increasing trend in the use of non-tariff measures (NTMs). This study evaluated the impact of NTMs in the Indian Ocean Rim Association through estimations of their ad valorem equivalents at the HS chapter and country levels. A gravity model using NTM count data (intensity) was specified and estimated to derive the importer-specific ad valorem equivalents for the four (4) most used NTMs in the region. The results showed the presence of both import-impeding and import-promoting effects of NTMs; however, the import-impeding effects dominated in the region. The quantitative restriction and safeguard measures were more restrictive compared to the sanitary and phytosanitary measures and technical barriers to trade. This was expected since quantitative restrictions are trade-distorting by design. This calls for reforming trade policy in the region toward NTMs that are more transparent and trade enhancing for successful subsequent trade negotiations in the Indian Ocean Rim Association, which would support the sustainable economic development of the region.
ISSN:2071-1050
2071-1050
DOI:10.3390/su14010068