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Title
Non-Tariff Measures in the Food Processing Sector in Malaysia: An Assessment of Welfare Impacts
Author
, Abul Quasem Al-Amin,
Email
Abstract

Given the ambiguity of the overall welfare effects of non-tariff measures (NTMs), this paper furthers our understanding of the well-being of consumers by focusing on a single sector analysis. It examines the welfare effects associated with the highly regulated food processing sector in Malaysia. A comparative static computable general equilibrium model is employed to quantify the welfare impacts of a partial removal of NTMs, or a reduction in trade restrictiveness of NTMs. The simulation results indicate welfare gains, albeit minimal (not more than 2%), from a partial reduction in NTMs, both in the short run and long run. A plausible reason for the somewhat small gains in welfare in the food sector is the dominance of standard-like measures relative to price or quantity-based regulations. The positive and small welfare effects from a partial removal of NTMs suggest that some regulations in the food processing sector may be pervasive in that they may embed some protectionist elements and/or they do not address genuine market failures. Therefore, this paper concludes that there is still scope for regulatory reform in the food processing sector in Malaysia.

Keywords
Journal or Conference Name
Institutions and Economies
Publication Year
2022
Indexing
scopus