Publication Type

Journal Article

Version

publishedVersion

Publication Date

12-2026

Abstract

Domestic policies regulating the horizontal dimensions of product differentiation can impede international trade and have become a major concern in contemporary trade negotiations. We estimate trade frictions associated with incompatible designs of electric plugs, a well-known example of a horizontal regulatory barrier. Our findings indicate that fewer electronic devices are exported to destinations with incompatible electric plugs, and this effect operates through both the extensive margin and the intensive margin of exports. These results are further corroborated by an online survey of Chinese electronics exporters. Moreover, incompatible plugs are associated with lower average quality of exported electronic devices, suggesting that horizontal regulatory barriers are linked to variation in the vertical dimension of product differentiation.

Keywords

Horizontal product standards, Non-tariff barriers, Product quality

Discipline

International Economics | Public Policy

Research Areas

International Economics

Areas of Excellence

Growth in Asia

Publication

Journal of International Economics

Volume

164

First Page

1

Last Page

36

ISSN

0022-1996

Identifier

10.1016/j.jinteco.2026.104312

Publisher

Elsevier

Additional URL

https://doi.org/10.1016/j.jinteco.2026.104312

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