Effect of Technical NTMs on Indian Exports to ASEAN: What Role Do Logistics and Governance Capabilities Play?

Abstract

Technical non-tariff measures (NTMs) represent a commonly employed set of trade policy tools with well-documented implications for international trade. However, this study seeks to delve deeper into the underlying factors shaping these trade effects, focusing specifically on Indian exports to the Association of South-East Asian Nations (ASEAN). This study posits that domestic institutional and infrastructural conditions play a pivotal role in influencing the impact of regulatory measures such as technical NTMs. By leveraging logistics and governance indicators to assess these conditions, the research adopts a novel two-stage analysis approach. Initially, the study quantifies the trade effects of technical NTMs, which subsequently serve as the dependent variable in the second stage. The findings uncover nuanced patterns specific to indicators and NTM categories, with a notable emphasis on the significance of importer (ASEAN) indicators over exporter (India) indicators. Moreover, this article introduces an innovative methodological framework that transcends conventional analyses of technical NTMs, aiming to pinpoint the precise factors driving their effects for targeted improvement strategies.