Quantificational analysis and simulation of Technical Barriers to Trade

The Technical Barriers to Trade (TBT) is an important problem faced to the export of China. Based on the number differences of TBT notifications between countries, we propose the concept and computational method of the technical barrier coefficient. By means of price-production and price-demand functions, a trade model with a developed country and an under-developing country is designed. The available trade policies such as technical barriers, tariffs and export subsidies are simulated and analyzed. According to the simulation results, several trade strategies to come over technical barriers are suggested. These suggestions were provided to several export enterprises for their export strategy design.