Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)

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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

Authors
Tyas Kurniasih, Maddaremmeng A. Panennungi
Corresponding Author
Tyas Kurniasih
Available Online 31 May 2021.
DOI
10.2991/assehr.k.210531.062How to use a DOI?
Keywords
Valorem Equivalents (AVE), Non-Tariff Measures, Sanitary Phytosanitary (SPS), Technical Barrier to Trade (TBT)
Abstract

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.

Copyright
© 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/).

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Volume Title
Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 May 2021
ISBN
978-94-6239-385-1
ISSN
2352-5398
DOI
10.2991/assehr.k.210531.062How to use a DOI?
Copyright
© 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

risenwbib
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  -