Working Paper: CEPR ID: DP12876
Authors: Marco Fugazza; Marcelo Olarreaga; Cristian Ugarte
Abstract: We examine the extent to which market-access barriers in Latin America a ect small and large Peruvian exporters to the region. Using a dataset that allows us to distinguish between tariffs and different types of non-tariff measures introduced by Latin American countries between 2000 and 2014, we fi nd that large Peruvian exporters benefit rather than lose from the introduction of tariffs and non-tariff measures in their destination markets. Their export value increases and the probability that they exit the export sector decreases as they face new market-access barriers abroad. The reverse is true for small exporters, which are hurt by more stringent market-access barriers.
Keywords: nontariff measures; tariffs; firm heterogeneity
JEL Codes: F13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Introduction of tariffs and NTMs (F13) | Increase in export value (F10) |
| Introduction of tariffs and NTMs (F13) | Decrease in probability of exiting the export sector (F14) |
| More stringent market-access barriers (F12) | Decrease in export value for small exporters (F14) |
| More stringent market-access barriers (F12) | Increase in exit probabilities for small exporters (F10) |
| Firm size (L25) | Ability to navigate market-access challenges (L10) |
| Tariffs and NTMs (F13) | More concentrated market structure (D49) |