Nontariff Measures and Services Trade Restrictions in Global Value Chains 301
Figure 7.13 Average Tariffs and NTM Ad Valorem Equivalents of Selected Sub-Saharan African Countries on African Importing Partners, by Sector Agriculture Agroindustry Mineral Chemical, plastics Leather, wood, paper Textile Apparel Footwear and gear Stone, cement Precious stones and metal Metal Machinery and vehicles, equipment Miscellaneous 0
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Average tariff or NTM AVE (%) SPS/TBT
Non-SPS/TBT
Tariffs
Source: Kee and Nicita 2016. Note: The trade impacts of nontariff measures (NTMs) are quantified using the estimated ad valorem equivalent (AVE) to measure their restrictiveness against tariffs as the benchmark. AVEs are calculated for seven Sub-Saharan African countries: Benin, Ethiopia, Ghana, Mali, Niger, Nigeria, and Togo. Data are the latest available between 2011 and 2015, varying by country. SPS = sanitary and phytosanitary measures; TBT = technical barriers to trade.
effect of institutions operates through services trade that involves foreign establishments (FDI) as opposed to cross-border, arms-length trade in services. From services trade liberalization to productivity to export performance. Trade is an important channel through which firms can improve their access to services inputs, resulting in lower prices, greater input variety, or both. The extent to which policies restrict access to foreign services inputs is therefore likely to be relevant for downstream productivity performance. Yet barriers to trade in services are rather substantial, even for high-income countries (Borchert, Gootiiz, and Mattoo 2014; OECD 2021). Hoekman and Shepherd (2015) use data from the World Bank Enterprise Surveys to analyze how services productivity affects manufacturing productivity and the relationship between the latter and firm-level export performance. They find a strong link between services and manufacturing
