Traditional trade policy tools like tariffs and quotas are being actively
replaced with non-tariff policy tools (NTB) by governments throughout
the world. In this paper we investigate how introduction of two types of
non-tariff measures, technical barriers to trade (TBT) and sanitary and
phytosanitary (SPS) measures, affects exporters in different countries.
According to the heterogeneous firms trade theory commenced with
Melitz model any additional cost of exporting will force some of the
firms to stop exporting, thus reducing the number of exporting firms
and products exported. We test this prediction using two primary data
sources: WTO data on trade concerns related to TBT and SPS measures
and World Bank Exporter Dynamics Database controlling for other
factors influencing export dynamics. Contrary to the previous studies
our results seem to suggest no casual effect of the introduction of NTBs
on export concentration and firms’ exit/entry rates.