The Impact of Technical Regulations on Trade: Evidence from South Africa

Puruweti SIYAKIYA

Abstract


Abstract. The purpose of this study is to investigate empirically the impact of technical barriers to trade (TBTs) by using the gravity model. The study used data from South Africa’s exports of all products and other product groupings destined to 57 selected countries which comprise both developing and developed countries. To control for misspecification error the study incorporated other explanatory variables. STATA system version 13 was used to analyse the regression of data ranging from 1995 to 2015. The results revealed that TBT notifications in general are trade restrictive. The regression results unravel that TBTs negatively affect mechanic and electrical products more than other product groupings. Accordingly for all exports in general the study’s findings are an increase in the number of TBTs has an effect of reducing exports by 4.88% on average. Given the results from the study it is imperative for South Africa to harmonise its standards with its trading partners.

Keywords. Gravity model, South Africa, Technical regulation, WTO.

JEL. F10, F40.


Keywords


Gravity model; South Africa; Technical regulation; WTO.

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DOI: http://dx.doi.org/10.1453/jel.v4i1.1212

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