Review of Development Economics· 2026Q1
Asymmetric Effects of Non‐Tariff Measures: Evidence From Argentina's Automotive Value Chain
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- Q1SCImago
- 2026year
Short summary
Argentina's non-automatic import licenses (NAILs) introduced in 2011 led to modest import declines but sharply reduced exports, particularly among auto parts firms, weakening overall export competitiveness.
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Key points
- Argentina's non-automatic import licenses (NAILs) were implemented in late 2011 to address the automotive trade deficit.
- The study found modest declines in targeted auto parts imports and limited evidence of import substitution.
- Exports, particularly from auto parts firms, experienced sharp contractions.
- The findings demonstrate asymmetric effects of non-tariff measures across different segments of a value chain.
AI-generated from the title and abstract; the full text is not read.
Abstract
ABSTRACT This paper examines the effects of Argentina's non‐automatic import licenses (NAILs), introduced in late 2011 to reduce the automotive trade deficit by increasing local content. Using rich product‐ and firm‐level data, we assess whether these measures curtailed imports of targeted auto parts and how they affected firm‐level trade, distinguishing between vehicle assemblers and parts manufacturers. We find only modest declines in imports, with limited evidence of import substitution, while exports fell sharply due to contractions among auto parts firms. Our results underscore the asymmetric effects of NTMs across segments of global value chains, providing timely evidence on how protectionist trade measures can unintentionally weaken export competitiveness in middle‐income economies.
The authors' abstract, as published at the source. Review of Development Economics, 2026 · DOI ↗
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Field: General Economics, Econometrics and Finance
General Economics, Econometrics and FinanceEconomics, Econometrics and Finance