Estimating Ad Valorem Equivalents (AVES) of Non-Tariff Measures: The Case of the Sanitary and Phytosanitary (SPS) and Technical Barrier to Trade (TBT) in Indonesian Bilateral Trade with 20 Main Trade Partners
- 10.2991/assehr.k.210531.062How to use a DOI?
- Valorem Equivalents (AVE), Non-Tariff Measures, Sanitary Phytosanitary (SPS), Technical Barrier to Trade (TBT)
This study aims to estimate the Ad Valorem Equivalents (AVEs) of the 20 largest trading partner countries of Indonesia as a result of the implementation of the Non-Tariff Measures (NTMs), especially Sanitary Phytosanitary (SPS) and Technical Barrier to Trade (TBT) from 2007 to 2016. AVE can be interpreted as an implicit tax issued by producers in order to meet the SPS and TBT policy requirements. The method used in this research is the quantity impact approach and fixed effect OLS estimator. The result of the SPS and TBT estimation coefficients at the 2-digit Harmonized System (HS) level is transformed into AVE. The result shows that AVEs of SPS and TBT measures for all major trading partners indicate significant differences. That means that the responses of all exporters to Indonesian SPS and TBT measures are varied in terms of sectoral affected and averages. There is also a trend of high GDP per capitacountries havinglow AVEs, while low GDP per capitacountries have high AVEs. NTMs have become protection devices for the government because sectors with low most-favored-nation (MFN) tariffs tend to have high AVEs.
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Tyas Kurniasih AU - Maddaremmeng A. Panennungi PY - 2021 DA - 2021/05/31 TI - Estimating Ad Valorem Equivalents (AVES) of Non-Tariff Measures: The Case of the Sanitary and Phytosanitary (SPS) and Technical Barrier to Trade (TBT) in Indonesian Bilateral Trade with 20 Main Trade Partners BT - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019) PB - Atlantis Press SP - 485 EP - 495 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210531.062 DO - 10.2991/assehr.k.210531.062 ID - Kurniasih2021 ER -