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Single Market Enlargement and Technical Barriers to Trade: Revisiting the Evidence

Jan Hagemejer
Jan Hagemejer
 and 
Łukasz Matuszczak
Łukasz Matuszczak
   | Mar 28, 2024
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Published Online: Mar 28, 2024
Page range: 79 - 96
DOI: https://doi.org/10.2478/ceej-2024-0008
Keywords
© 2024 Jan Hagemejer et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

Figure 1.

Results of a counterfactual exercise
Results of a counterfactual exercise

Variables used in the empirical analysis

Variable Description
Trade value The dependent variable. The value of bilateral trade in goods. The value is expressed in thousands of USD.
RTA The vector of discrete variables takes the value of 1 when both trade partners are in the same RTA and 0 otherwise (e.g. RTA among CEE countries; RTA between CEE and EU; other RTA combinations).
NA-EU Discrete variables take the value of 1 when a New Approach in sector k occurs in trade between country j and country i in time t. Both partner countries should be EU member states. Otherwise, the variable takes the value of 0.
MR-EU Discrete variables take a value of 1 when there is a Mutual Recognition in sector k occurring in trade between country j and country i in time t. Both partner countries should be EU member states. Otherwise, the variable takes the value of 0.
HR-EU Discrete variables take a value of 1 when there are Harmonization Regulations in sector k occurring in trade between country j and country i in time t. Both partner countries should be EU member states. Otherwise, the variable takes the value of 0.
None-EU Discrete variables take the value of 1 when no TBT is imposed in sector k in trade between country j and country i in time t. Both partner countries should be EU member states. Otherwise, the variable takes the value of 0.
NA-EU15-NMS Discrete variables take a value of 1 when there is a New Approach in sector k occurring in trade between country j and country i in time t. The good originated from EU15, and the trading partner is a new EU member state. Otherwise, the variable takes the value of 0.
NA-NMS-EU15 Discrete variables take the value of 1 when a New Approach in sector k occurs in trade between country j and country i in time t. The good originates from a New member state, and the trading partner is an EU15 member state. Otherwise, the variable takes the value of 0.
NA-NMS-NMS Discrete variables take the value of 1 when a New Approach in sector k occurs in trade between country j and country i in time t. Otherwise, the variable is taking the value of 0.
MR-EU15-NMS Discrete variables take a value of 1 when there is a Mutual Recognition in sector k occurring in trade between country j and country i in time t. The good originated from EU15, and the trading partner is a new EU member state. Otherwise, the variable takes the value of 0.
MR-NMS-EU15 Discrete variables take a value of 1 when there is a Mutual Recognition in sector k occurring in trade between country j and country i in time t. The good originates from a New member state, and the trading partner is an EU15 member state. Otherwise, the variable takes the value of 0.
MR-NMS-NMS Discrete variables take a value of 1 when there is a Mutual Recognition in sector k occurring in trade between country j and country i in time t. Both trade partners are New EU member states. Otherwise, the variable takes the value of 0.
HR-EU15-NMS Discrete variables take a value of 1 when there are Harmonization Regulations in sector k occurring in trade between country j and country i in time t. The good originated from EU15, and the trading partner is a new EU member state. Otherwise, the variable takes the value of 0.
HR-NMS-EU15 Discrete variables take a value of 1 when there are Harmonization Regulations in sector k occurring in trade between country j and country i in time t. The good originates from a New member state, and the trading partner is an EU15 member state. Otherwise, the variable takes the value of 0.
HR-NMS-NMS Discrete variables take a value of 1 when there are Harmonization Regulations in sector k occurring in trade between country j and country i in time t. Both trade partners are New EU member states. Otherwise, the variable takes the value of 0.

TBT observations distribution

TBT Freq. Percent Cum.
HR 2,417,594 19.11 19.11
HR+MRA 187,271 1.48 20.59
HR+MRP 237,622 1.88 22.47
MRA 571,503 4.52 26.99
MRP 2,187,488 17.29 44.28
NA 3,149,899 24.90 69.18
NA+MRA 687,612 5.43 74.61
NA+MRP 140,800 1.11 75.72
None 3,072,386 24.28 100.00
Total 12,652,175 100.00

The list of TBT and industry

Industry NACE Technology TBT Industry NACE Technology TBT
Mining and agglomeration of lignite 102 Low-technology HR Ceramic goods 262 High-technology None
Extraction of crude petroleum and natural gas 111 Low-technology MRP Bricks, tiles and construction products 264 High-technology NA
Service activities incidental to oil and gas extraction, excluding surveying 112 Low-technology MRP Cement, lime and plaster 265 High-technology NA
Mining of uranium and thorium ores 120 Low-technology HR Articles of concret, plaster and cement 266 High-technology NA
Mining of iron metals 131 Low-technology None Cutting, shaping, finishing of stone 267 High-technology None
Mining of non-ferrous metal ores, exept uranium and thorium ores 132 Low-technology None Other non-metallic mineral products 268 High-technology HR
Quarrying of stone 141 Low-technology MRP Basic iron and steel, ferro-alloys (ECSC) 271 Medium-high-technology NA+MRP
Mining of chemical and fertilizer minerals 143 Low-technology None Tubes 272 Medium-high-technology None
Production of salt 144 Low-technology None Other first processing of iron and steel 273 Medium-high-technology None
Meat products 151 Low-technology HR Basic precious and non-ferrous metals 274 Medium-high-technology NA
Fish and fish products 152 Low-technology HR Structural metal products 281 Medium-high-technology NA
Fruits and vegetables 153 Low-technology HR Tanks, reservoirs, central heating radiators and boilers 282 Medium-high-technology NA
Vegetable and animal oils and fats 154 Low-technology HR+MRP Forging, pressing, stamping and roll forming of metal; powder 289x metallurgy 284 Medium-high-technology None
Dairy products; ice cream 155 Low-technology HR Treatment and coating of metals; general mechanical engineering 285 Medium-high-technology None
Grain mill products and starches 156 Low-technology HR Cutlery, tools and general hardware 286 Medium-high-technology NA
Prepared animal feeds 157 Low-technology HR Machinery for production, use of mech. power 291 Medium-high-technology NA
Other food products 158 Low-technology HR Other general purpose machinery 292 Medium-high-technology NA
Beverages 159 Low-technology MRP Agricultural and forestry machinery 293 Medium-high-technology NA
Tobacco products 160 Low-technology HR Machine-tools 294 Medium-high-technology NA
Textile fibres 171 Low-technology None Other special purpose machinery 295 Medium-high-technology NA
Textile weaving 172 Low-technology None Domestic appliances n. e. c. 297 Medium-high-technology NA+MRA
Finishing of textiles 173 Low-technology MRP Office machinery and computers 300 Medium-high-technology MRA
Made-up textile articles 174 Low-technology MRP Electric motors, generators and transformers 311 Low-technology NA
Other textiles 175 Low-technology NA+MRA Electricity distribution and control apparatus 312 Low-technology MRP
Knitted and crocheted fabrics 176 Low-technology MRP Isolated wire and cable 313 Low-technology MRA
Knitted and crocheted articles 177 Low-technology MRP Lighting equipment and electric lamps 315 Low-technology NA+MRA
Other wearing apparel and accessories 182 Medium-low-technology None Electronic valves and tubes, other electronic comp. 321 Low-technology NA+MRA
Dressing and dyeing of fur; articles of fur 183 Low-technology MRP TV, radio and recording apparatus 323 Low-technology HR+MRA
Tanning and dressing of leather 191 Medium-low-technology None Medical equipment 331 Medium-low-technology NA
Footwear 193 Medium-low-technology None Instruments for measuring, checking, testing, navigating 332 Medium-low-technology None
Sawmilling, planing and impregnation of wood 201 Medium-high-technology None Optical instruments and photographic equipment 334 Medium-low-technology None
Panels and boards of wood 202 Medium-high-technology NA Watches and clocks 335 Medium-low-technology None
Builders’ carpentry and joinery 203 Medium-high-technology NA Motor vehicles 341 Medium-low-technology HR
Wooden containers 204 Medium-high-technology None Bodies for motor vehicles, trailers 342 Medium-low-technology None
Other products of wood; articles of cork, etc. 205 Medium-high-technology None Parts and accessories for motor vehicles 343 Medium-low-technology HR
Pulp, paper and paperboard 211 High-technology HR Ships and boats 351 Low-technology MRP
Articles of paper and paperboard 212 High-technology HR Railway locomotives and rolling stock 352 Low-technology MRP
Publishing 221 High-technology HR Aircraft and spacecraft 353 Low-technology MRP
Printing 222 Medium-low-technology None Motorcycles and bicycles 354 Low-technology MRP
Coke oven products 231 Medium-low-technology MRP Furniture 361 Low-technology MRP
Refined petroleum and nuclear fuel 232 Medium-low-technology HR Jewellery and related articles 362 Low-technology NA
Nuclear fuel 233 Medium-low-technology HR Musical instruments 363 Low-technology None
Basic chemicals 241 Medium-low-technology MRP Sports goods 364 Low-technology NA
Pesticides, other agro-chemical products 242 Medium-low-technology HR+MRP Games and toys 365 Low-technology NA
Paints, coatings, printing ink 243 Medium-low-technology MRP Miscellaneous manufacturing n. e. c. 366 Low-technology None
Pharmaceuticals 244 Medium-low-technology MRA Production and distribution of electricity 401 Low-technology None
Detergents, cleaning and polishing, perfumes 245 Medium-low-technology HR Manuacture of gas; distribution of gaseous fuels through mains 402 Low-technology None
Other chemical products 246 Medium-low-technology MRP Steam and hot water supply 403 Low-technology None
Rubber products 251 Medium-low-technology None Collection, purification and distribution of water 410 Low-technology HR
Plastic products 252 Medium-low-technology NA Motion picture and video activities 921 Low-technology None
Glass and glass products 261 High-technology NA

Estimates of trade liberalisation in TBT among EU Member States

VARIABLES All sectors All sectors High-tech Medium-hightech Medium-low tech Low tech All sectors
(1) (2) (3) (4) (5) (6) (7)
RTA 0.0188*** 0.0189*** −.012465 .0329128*** .0017943 .0252775*** 0.0188***
(0.00472) (0.00472) .0083309 .0107669 .0056227 .0084095 (0.00472)
RTA CEE −0.0223 0.0783*** .0649999* .1408041*** .0972213*** −.0167929 −0.0379*
(0.0146) (0.0199) .0342033 .0292653 .0358558 .0409532 (0.0195)
RTA CEE UE −0.0735*** −0.0409*** −.1129603*** .0039924 −.117901*** .0503106*** −0.0386***
(0.00830) (0.0100) .0149379 .0157854 .0179346 .0187081 (0.00960)
NA_EU 0.0136***
(0.00460)
MR_EU −0.00768
(0.00816)
HR_EU 0.0140***
(0.00543)
none_EU 0.0148***
(0.00525)
NA-EU15-NMS −0.0534*** .0526952 −.0269492 .0155141 −.1057659** 0.0831***
(0.0160) .0504126 .0199265 .0364956 .049518 (0.0190)
NA-NMS-EU15 0.145*** .2508488*** .1775791*** .097095*** .2936307*** 0.0895***
(0.0188) .0413104 .0251493 .0453394 .0539502 (0.0287)
NA-NMS-NMS 0.0942*** .3505328*** .200204*** −.1348145** −.022882 0.356***
(0.0248) .0632008 .0332285 .0598275 .0734733 (0.0356)
MR-EU15-NMS 0.0651*** (omitted) .0071325 .0985143*** .0923532** 0.148***
(0.0234) .0496438 .0290378 .0399543 (0.0316)
MR-NMS-EU15 0.0377 (omitted) −.0343424 .3994119*** −.1333244*** 0.0560
(0.0275) .0616616 .039404 .0400508 (0.0374)
MR-NMS-NMS 0.145*** (omitted) .0789878 .2778632*** .0426703 −0.0996
(0.0338) .0579968 .046876 .0603844 (0.0608)
HR-EU15-NMS 0.128*** .0170128 (omitted) .0411172 .2959768*** 0.257***
(0.0295) .0270469 .0499832 .0442682 (0.0318)
HR-NMS-EU15 0.276*** .3145475*** (omitted) −.064045 .8265343*** 0.551***
(0.0367) .0311062 .059602 .0494348 (0.0401)
HR-NMS-NMS 0.209*** −.0845362* (omitted) .0838884 .4971171*** 0.575***
(0.0371) .0438424 .0673421 .0511993 (0.0380)
None-EU15-NMS 0.166*** −.1212058*** .1458626*** .2292322*** −.0202643 0.144*
(0.0505) .0472334 .0405111 .076868 .0351835 (0.0834)
None-NMS-EU15 −0.122*** −.316273*** .0968501*** −.2923275*** .3317987*** −0.211***
(0.0223) .0605635 .0360711 .0332407 .0500403 (0.0290)
None-NMS-NMS 0.431*** −.1457483** .147424*** .6738975 .2335274*** 0.357***
(0.0587) .0711817 .052262 .0969544*** .0610534 (0.0721)
NA-EU15-V4 −0.184***
(0.0207)
NA-V4-EU15 0.133***
(0.0190)
NA-V4-V4 −0.153***
(0.0315)
NA-V4-NMS −0.113***
(0.0287)
MR-EU15-V4 0.0136
(0.0278)
MR-V4-EU15 0.0293
(0.0311)
MR-V4-V4 0.0405
(0.0418)
MR-V4-NMS 0.169***
(0.0393)
HR-EU15-V4 −0.0323
(0.0397)
HR-V4-EU15 0.160***
(0.0407)
HR-V4-V4 −0.178***
(0.0613)
HR-V4-NMS 0.146***
(0.0403)
None-EU15-V4 0.115***
(0.0409)
None-V4-EU15 −0.151***
(0.0260)
None-V4-V4 0.125**
(0.0614)
None-V4-NMS 0.412***
Constant 13.52*** 13.51*** 11.84421*** 13.28023*** 13.63611*** 13.6876*** 13.51***
(0.00157) (0.00158) .0027644 .0034178 .0022599 .0028308 (0.00155)
(0.102)
N of obs. 12,355,183 12,355,183 1,271,213 2,834,200 3,376,816 4,872,954

Estimates for trade liberalisation in TBT among EU Member States

HR HR+MR MR NA NA+MR None
VARIABLES (1) (2) (3) (4) (5) (6)
RTA 0.0339* −0.00423 0.0123 0.0806*** 0.0954*** −0.0163
(0.0188) (0.0164) (0.0183) (0.0213) (0.0194) (0.0201)
RTA CEE 0.404*** 0.0614 0.177*** −0.0595 0.164** 0.499***
(0.127) (0.0580) (0.0604) (0.0501) (0.0785) (0.0725)
RTA CEE UE 0.395*** −0.102** −0.00993 −0.0208 0.271*** −0.00325
(0.0789) (0.0435) (0.0398) (0.0348) (0.0388) (0.0420)
EU15 to NMS −0.276*** 0.182*** 0.258*** 0.0141 0.146*** −0.0659
(0.0860) (0.0393) (0.0474) (0.0335) (0.0491) (0.0832)
NMS to EU15 0.578*** 0.265*** 0.0101 0.141*** 0.698*** −0.235***
(0.134) (0.0592) (0.0528) (0.0376) (0.0510) (0.0393)
NMS to NMS 0.562*** 0.147*** 0.345*** −0.0159 0.311*** 0.485***
(0.134) (0.0569) (0.0672) (0.0514) (0.0806) (0.0939)
Constant 13.39*** 15.03*** 15.48*** 15.09*** 14.74*** 14.54***
(0.00944) (0.00563) (0.00558) (0.00661) (0.00758) (0.00619)
Observations 221,83 354,348 355,499 342,843 259,306 353,184

Summary statistics

Variable Obs Mean Std. Dev. Min Max
Year 12,652,175 2009.808 6.449645 1995 2020
Export value 12,652,175 19094.65 341852.5 1.15e-10 2.01e+08
RTA 12,652,175 .2013112 .4009801 0 1
RTA-CEE-UE 12,652,175 .0121949 .1097551 0 1
RTA-CEE 12,652,175 .002402 .0489509 0 1
NA 12,652,175 .3144369 .4642912 0 1
NA-EU 12,652,175 .0226739 .1488616 0 1
NA-EU15-NMS 12,652,175 .0055967 .0746018 0 1
NA-NMS-EU15 12,652,175 .0048632 .0695668 0 1
NA-NMS-NMS 12,652,175 .0036937 .0606633 0 1
NA-EU15-NMS(other) 12,652,175 .0037779 .0613486 0 1
NA-EU15-V4 12,652,175 .0024246 .0491801 0 1
NA-V4-EU15 12,652,175 .0030244 .0549112 0 1
NA-V4-V4 12,652,175 .0024284 .0492193 0 1
NA-V4-NMS 12,652,175 .0013491 .0367053 0 1
MR 12,652,175 .342041 .4743933 0 1
MR EU 12,652,175 .0252982 .1570292 0 1
MR-EU15-NMS 12,652,175 .0062408 .078752 0 1
MR-NMS-EU15 12,652,175 .0053653 .0730516 0 1
MR-NMS-NMS 12,652,175 .0040377 .0634147 0 1
MR-EU15-NMS(other) 12,652,175 .0041938 .0646238 0 1
MR-EU15-V4 12,652,175 .0027208 .0520903 0 1
MR-V4-EU15 12,652,175 .0033346 .0576497 0 1
MR-V4-V4 12,652,175 .0026562 .0514701 0 1
MR-V4-NMS 12,652,175 .0014717 .0383343 0 1
HR 12,652,175 .2246639 .4173608 0 1
HR EU 12,652,175 .0167582 .1283643 0 1
HR-EU15-NMS 12,652,175 .0041769 .0644939 0 1
HR-NMS-EU15 12,652,175 .0034418 .0585656 0 1
HR-NMS-NMS 12,652,175 .0026463 .0513737 0 1
HR-EU15-NMS(other) 12,652,175 .0028076 .0529122 0 1
HR-EU15-V4 12,652,175 .0018074 .0424755 0 1
HR-V4-EU15 12,652,175 .0020909 .045679 0 1
HR-V4-V4 12,652,175 .0017252 .0414992 0 1
HR-V4-NMS 12,652,175 .0009456 .0307362 0 1
None 12,652,175 .2428346 .428796 0 1
None EU 12,652,175 .0193679 .1378143 0 1
None-EU15-NMS 12,652,175 .0047352 .0686499 0 1
None-NMS-EU15 12,652,175 .003963 .0628271 0 1
None-NMS-NMS 12,652,175 .0029981 .0546731 0 1
None-EU15-NMS(other) 12,652,175 .0031353 .0559056 0 1
None-EU15-V4 12,652,175 .0021295 .0460975 0 1
None-V4-EU15 12,652,175 .002423 .0491641 0 1
None-V4-V4 12,652,175 .0020193 .0448908 0 1
None-V4-NMS 12,652,175 .0010664 .032638 0 1
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