DP12876 On the heterogeneous effects of market access barriers: evidence from small and large Peruvian exporters

Author(s): Marco Fugazza, Marcelo Olarreaga, Cristian Ugarte
Publication Date: April 2018
Keyword(s): Firm Heterogeneity, Non-Tariff Measures, tariffs
JEL(s): F13
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=12876

We examine the extent to which market-access barriers in Latin America affect small and large Peruvian exporters to the region. Using a dataset that allows us to distinguish between tariffs and different types of non-tariff measures introduced by Latin American countries between 2000 and 2014, we find that large Peruvian exporters benefit rather than lose from the introduction of tariffs and non-tariff measures in their destination markets. Their export value increases and the probability that they exit the export sector decreases as they face new market-access barriers abroad. The reverse is true for small exporters, which are hurt by more stringent market-access barriers.