selected African countries. Specifically, we combine firm-product level customs transactions data on the universe of exporting firms in Senegal, Malawi, and Burkina Faso with data on NTMs in a reduced form gravity model of trade framework. We find no effect of standards and technical regulations on the extensive margin of trade in the sample of countries used in the study. On the other hand, we find that standards and technical regulations reduce trade at the intensive margins in both the agriculture and manufacturing sectors. This trade-reducing effect at the intensive margin is less pronounced for intermediate goods compared to consumable goods, as well as for large and medium-sized firms compared to small firms. Similarly, the trade-reducing effect is overturned for firms with relatively higher initial product quality in the manufacturing sector, while it is less pronounced for their counterparts in the agriculture sector. In addition, our findings indicate that the trade-reducing effect at the intensive margin does not vary by the level of development of the destination country, nor whether the export destination lies within or outside of Africa.

This paper enhances our understanding of the impact of NTMs on Africa’s trade in several ways. Most existing studies have focused on the effects of NTMs on African exports at the country level, primarily within the agriculture sector. It is well-established in international trade literature that firms, rather than countries, are the main participants in international trade. Therefore, by using firm-level data, we can examine how NTMs influence the export decisions of African exporting firms. This approach allows us to determine whether firms adjust at the extensive margin or the intensive margin, consistent with trade models featuring heterogeneous firms. Additionally, unlike most previous studies on Africa, we consider both the agriculture and manufacturing sectors. Our findings reveal an unequal impact of technical measures on these sectors, with the agriculture sector being most affected. Moreover, the use of firm-level data enables us to study how the impacts differ by firm characteristics, in addition to product and destination characteristics.

Our empirical results have important policy implications. First, our findings suggest that standards and technical regulations are one of the barriers affecting the export performance of African firms. Specifically, these NTMs operate mainly as variable trade costs, such as expenses incurred during the transition from low-quality to high-quality products, thereby impacting trade at the intensive margin. However, the NTMs tend to disproportionately reduce export sales for low-productivity firms compared to medium and large-sized firms. This discrepancy arises because low-productivity firms are less equipped to absorb these additional compliance costs. Thus, implementing policies targeted at enhancing the productivity of small firms could help alleviate some of these costs for them.

Second, our finding that the trade-reducing impact of NTMs on the intensive margin is reversed for firms with comparatively higher initial product quality in the manufacturing sector, suggests that NTMs are not always trade-restrictive, particularly for such firms. By correcting market failures, standards play a pivotal role in boosting the export sales of firms that offer high-quality products. Hence, initiatives focused on upgrading product quality, such as incorporating high-quality intermediate goods into the production process, could assist firms in surmounting the obstacles presented by the imposition of NTMs.

Finally, our finding that the trade-restricting impact of NTMs does not depend on whether 21