The Impacts of Non-Tariff Measures on China’s Tea Exports
|Author:||Mgr. Ling Liu|
|Year:||2021 - winter|
|Leaders:|| Ing. Vilém Semerák M.A., Ph.D.
|Work type:|| Masters
|Awards and prizes:|
|Abstract:||Tea is China's traditional export-earning agricultural product. For a long time, China's
tea exports have occupied an extremely important position in the international market.
With the further opening of the international agricultural product market and the
increasingly fierce competition in the international tea market, China's tea exports are
increasingly being affected by technical barriers.The purpose of this paper is to
empirically analyze which factors are affecting Chinese green tea exports. In addition,
there is a focus on the trade status of Chinese green tea in the EU market, Japan and the
To achieve this objective, this paper adopts a modern approach to gravity models, i.e.
an approach which uses specifications based on micro-foundations. Specifically, The
paper uses a specification which explicitly takes into account the nature of multilateral
trade resistance (MTR). More specifically, estimators based on traditional panel
methods (combined with the recommended structures of dummies) and
Silva-Tenreyro’s (2006) PPML estimator (also combined with dummies).
The results show that the maximum residue limits(MRL) of pesticides in importing
countries have significantly impacted the export of Chinese tea. The cultural effects
such as the Language similarity have a positive impact on China’s green tea exports.
Finally, this paper makes policy recommendations to further improve the formulation
of China's MRT standards and establish a pesticide evaluation system in line with