Trade Policy Reversion: Quantifying the Diversionary Impact of Non-Tariff Barriers on Bilateral Trade Flows (2015–2024)

dc.contributor.authorPashchuk, Lidiiaen
dc.contributor.authorLvova, Ninaen
dc.contributor.authorZavhorodnia, Olena O.en
dc.contributor.authorZhmurenko, Vitalii H.en
dc.contributor.authorRuncheva, Nataliiaen
dc.date.accessioned2026-02-13T12:37:54Z
dc.date.issued2025
dc.descriptionL. Pashchuk: ORCID 0000-0003-1184-1545; N. Lvova: ORCID 0000-0002-8884-3154; O. Zavhorodnia: ORCID 0000-0002-6546-1356; V. Zhmurenko: ORCID 0009-0004-1465-3050; N. Runcheva: ORCID 0000-0001-8645-9821en
dc.description.abstractENG: In recent years, protectionism has become a hallmark of the global economy and international trade. This study quantifies the measurable impact of tariff and non-tariff barriers on bilateral trade flows among 30 major economies from 2015 to 2024. Employing a panel data gravity model, the paper specifies the logarithm of bilateral trade flows as the dependent variable, with average tariff rates and a non-tariff measures (NTM) index as key explanatory variables, while controlling for GDP, exchange rate volatility, distance, and trade agreements. Estimations are performed using fixed-effects and instrumental-variable approaches to address potential endogeneity and unobserved heterogeneity. The empirical results reveal that a one-percentage-point increase in tariffs reduces bilateral trade flows by 0.12%, while a 0.1-point rise in the NTM index lowers trade by 3.5%, confirming the diversionary effects of modern protectionism. The findings demonstrate that regulatory protectionism exerts stronger trade-restrictive effects than traditional tariffs, particularly in technology-intensive sectors. Policymakers are urged to design adaptive trade strategies that preserve national competitiveness while maintaining open global trade channels to ensure sustainable growth.en
dc.description.sponsorshipTaras Shevchenko National University of Kyiv, Ukraine; State Organization “Institute of Market and Economic & Ecological Researches, National Academy of Sciences of Ukraine,” Odessa, Ukraine; Bogdan Khmelnitsky Melitopol State Pedagogical University, Melitopol, Ukraineen
dc.identifier.citationPashchuk L., Lvova N., Zavhorodnia O., Zhmurenko V., Runcheva N. Trade Policy Reversion: Quantifying the Diversionary Impact of Non-Tariff Barriers on Bilateral Trade Flows (2015–2024). Journal of Applied Economic Sciences. 2025. Vol. 20, Iss. 4 (90). P. 717–730. DOI: https://doi.org/10.57017/jaes.v20.4(90).05.en
dc.identifier.doihttps://doi.org/10.57017/jaes.v20.4(90).05.en
dc.identifier.issn1843-6110 (Print)
dc.identifier.issn2393-5162 (Online)
dc.identifier.urihttps://www.ritha.eu/journals/JAES/issues/90/articles/5en
dc.identifier.urihttps://crust.ust.edu.ua/handle/123456789/21668en
dc.language.isoen
dc.publisherRITHA Publishing House, Craiova, Romaniaen
dc.rightsCreative Commons Attribution 4.0 International Licenseen
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/en
dc.subjecttrade policyen
dc.subjectprotectionismen
dc.subjectnon-tariff barriersen
dc.subjectgravity modelen
dc.subjectpanel dataen
dc.subjectbilateral trade flowsen
dc.subjectКМЕіСГДuk_UA
dc.subject.classificationSOCIAL SCIENCESen
dc.subject.classificationSOCIAL SCIENCES::Business and economicsen
dc.titleTrade Policy Reversion: Quantifying the Diversionary Impact of Non-Tariff Barriers on Bilateral Trade Flows (2015–2024)en
dc.typeArticleen

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