Export Response to Technical Barriers to Trade: Firm-Level Evidence from Pakistan

This study empirically examines the responses of trade margins to a battery of technical barriers to trade (TBT) and explores the mechanism, drivers and speed of adjustment. It uses a highly-disaggregated transaction-level dataset of mango-exporting firms from Pakistan and exploits a quasi-natural experiment in the identification strategy. It finds that, following the application of TBT measures, exports increased along the intensive margins. The process of adjustment took around four years, and larger quantities as well as higher prices drive this effect. Moreover, firms shrink their client base in destination markets but ship large quantities to a few big retailers.