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Exports and governance: the role of private voluntary agrifood standards

Author

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  • Dela‐Dem Doe Fiankor
  • Inmaculada Martínez‐Zarzoso
  • Bernhard Brümmer

Abstract

The empirical evidence that institutional differences across countries affect bilateral trade is robust. The crucial question remains how countries can enhance trade amid these differences. In this article, we measure the degree to which governance and institutions differ between countries as “governance distance.” Using a sample of EU/EFTA imports, we examine how adopting private agrifood safety standards modify the effect of governance distance on exports of fruits and vegetables, in particular apples, bananas, and grapes, within a structural gravity framework. Our results show that while increasing governance distance hinders bilateral trade, the interaction of standards and the governance distance is positively associated with exports, hence partially offsetting the direct trade‐inhibiting effects of the latter. GlobalGAP certified countries see the trade‐inhibiting effects of governance distance on their exports reduced by about 50%, ceteris paribus.

Suggested Citation

  • Dela‐Dem Doe Fiankor & Inmaculada Martínez‐Zarzoso & Bernhard Brümmer, 2019. "Exports and governance: the role of private voluntary agrifood standards," Agricultural Economics, International Association of Agricultural Economists, vol. 50(3), pages 341-352, May.
    • Handle: RePEc:bla:agecon:v:50:y:2019:i:3:p:341-352
    DOI: 10.1111/agec.12488
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    Cited by:

    1. Santeramo, Fabio Gaetano & Martinez-Gomez, Victor & Márquez-Ramos, Laura & Lamonaca, Emilia, . "The Import Effects of the Entry Price System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).
    2. Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2020. "Global and local food value chains in Africa: A review," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 143-157, January.
    3. Laura M. G. Hidalgo & Rosane N. de Faria & Roberta Souza Piao & Christine Wieck, 2023. "Multiplicity of sustainability standards and potential trade costs in the palm oil industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 263-284, January.
    4. Lijiao Hu & Yuqing Zheng & Timothy A. Woods & Yoko Kusunose & Steven Buck, 2023. "The market for private food safety certifications: Conceptual framework, review, and future research directions," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 197-220, March.
    5. Md Ali Emam & Markus Leibrecht & Tinggui Chen, 2022. "The Impact of a “National Green Export Review” on Competitiveness: Empirical Evidence for Ecuador’s Fish Exports," Agriculture, MDPI, vol. 13(1), pages 1-14, December.
    6. Ni, Shiying & Bai, Xiwen & Li, Lefei, 2022. "Behind the heterogeneous trade effects of standards: Multi-sector evidence from China," Journal of Asian Economics, Elsevier, vol. 82(C).
    7. Chen, Yuquan & Fiankor, Dela-Dem Doe & Tan, Fuli, 2021. "An assessment of the effect of the Round Table on Responsible Soy certification on soybean exports," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329433, Asian Society of Agricultural Economists (ASAE).
    8. Helena Engemann & Yaghoob Jafari & Thomas Heckelei, 2023. "Institutional quality and the duration of agri‐food trade flows," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 135-154, February.
    9. Liam Pippinato & Simone Blanc & Teresina Mancuso & Filippo Brun, 2020. "A Sustainable Niche Market: How Does Honey Behave?," Sustainability, MDPI, vol. 12(24), pages 1-14, December.
    10. Dela-Dem Doe Fiankor & Daniele Curzi & Alessandro Olper, 2021. "Trade, price and quality upgrading effects of agri-food standards [Endogenous Trade Policy with Heterogeneous Firms]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 835-877.

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