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Do Non-Tariff Measures Affect Exporters' Margins-Evidence from Indonesia

June 24, 2021

Kuala Lumpur Research Seminar Series

  • Non-tariff measures (NTMs) have been an increasingly important trade policy tool. While they often absolve an important function to protect the consumers and the environment, they can also affect the competitiveness of firms. This paper contributes to the scant empirical evidence in this area by analyzing the effect of a number of specific NTMs on export activity of Indonesian firms. To that end, the analysis matches two unique datasets: one, a customs-level dataset on Indonesian firms' exports and imports and another on a novel time-varying dataset on NTMs at a highly disaggregated product level. Our results demonstrate that an increase in NTM exposure is associated with a negative impact on the survival time of firms in the export market, the number of products and markets they trade in, their entry into markets and their export values and quantities. NTMs have a more negative effect than tariffs in most cases. These results show that the impact of trade policy requires understanding of how individual firms will be affected by changes in policy. They can help policymakers to properly target export promotion activities, especially when policymakers are interested in export-led growth and diversification.

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    Presentation Slides

  • Angella Faith Montfaucon, a Malawian national, is an economist in the 2019 cohort of Young Professionals program in the Macroeconomics, Trade and Investment global practice at the World Bank. Her work includes working on trade policy and fiscal policy. Prior to joining the World Bank, she worked at the Reserve Bank of Malawi as a Fiscal Analyst and working for two private sector banks. She also has University teaching experience. She has published on financial inclusion, international trade and finance and exchange rates. She received her Ph.D. in Economics in 2019 from Yokohama National University in Japan, and an MA in Economic Policy Management from University of Zambia.


  • WHEN (KUALA LUMPUR TIME): Thursday, June 24, 2021: 9:00 - 10:00am
  • WHEN (ET/WASHINGTON, D.C. TIME): Wednesday, June 23, 2021: 9:00 – 10:00pm