Standards and political connections: Evidence from Tunisia
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Other documents of the author: Kruse, Hendrik Wiard; Martinez-Zarzoso, Inmaculada; Baghdadi, Leila
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comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
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INVESTIGACIONMetadata
Title
Standards and political connections: Evidence from TunisiaDate
2021-08-17Publisher
ElsevierISSN
0304-3878Bibliographic citation
KRUSE, Hendrik W.; MARTÍNEZ-ZARZOSO, Inma; BAGHDADI, Leila. Standards and political connections: Evidence from Tunisia. Journal of Development Economics, 2021, vol. 153, p. 102731.Type
info:eu-repo/semantics/articleVersion
info:eu-repo/semantics/acceptedVersionSubject
Abstract
In this paper we investigate whether trade liberalization leads to more stringent product standards in a developing country context, uncovering the role that the connected firms’ market share plays in markets dominated ... [+]
In this paper we investigate whether trade liberalization leads to more stringent product standards in a developing country context, uncovering the role that the connected firms’ market share plays in markets dominated by imports. We estimate a two-part model using data over the period from 2002 to 2010 to test whether additional product standards emerge in sectors where politically connected firms have a higher market share. Our main results show that the mechanisms we anticipated are in fact at play in Tunisia. During the implementation period of the EU-Tunisia association agreement, we find that sectors with a higher import share of connected firms – linked to the Ben Ali family – tend to have a higher probability of an increasing number of technical barriers to trade. This result is robust to addressing endogeneity issues and to the introduction of dynamics into the model. [-]
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Journal of Development Economics 153 (2021) 102731Funder Name
Ministerio de Economía y Competitividad (Spain) | Universitat Jaume I | Generalitat Valenciana
Project code
PID2020-114646RB-C4 | UJI-B2020-57 | PROMETEO2018/108
Rights
0304-3878/© 2021 Elsevier B.V. All rights reserved.
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info:eu-repo/semantics/embargoedAccess
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