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Product standards, trade disputes, and protectionism

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  • Daniel Sturm

Abstract

Disputes over national product standards are a major source of tension in international trade negotiations. The usual pattern is that exporters challenge new product standards as a `disguised barrier to trade.' The paper develops a two-country political agency model of standard setting. It is shown that there exists a political equilibrium in which the importing country on average applies a more stringent standard than the exporting country. This difference can be due either to a too lax standard in the exporting country or a too stringent standard in the importing country.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 39 (2006)
Issue (Month): 2 (May)
Pages: 564-581

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Handle: RePEc:cje:issued:v:39:y:2006:i:2:p:564-581

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References

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  1. Stephen Nickell & Patricia Jones & Glenda Quintini, 2002. "A Picture of Job Insecurity Facing British Men," Economic Journal, Royal Economic Society, vol. 112(476), pages 1-27, January.
  2. Burgess, Simon & Turon, Hélène, 2000. "Unemployment Dynamics, Duration and Equilibrium: Evidence from Britain," CEPR Discussion Papers 2490, C.E.P.R. Discussion Papers.
  3. Timothy Besley & Anne Case, 1993. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," NBER Working Papers 4575, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Gaigné, Carl & Larue, Bruno, 2013. "Quality Standards, International Trade and the Evolution of Industries," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150469, Agricultural and Applied Economics Association.
  2. Joanna Poyago-Theotoky & Huw Edwards, 2012. "Regulatory protection when firms decide first on technical collaboration and R&D," Working Papers 2012.05, School of Economics, La Trobe University.
  3. Vigani, Mauro & Olper, Alessandro, 2012. "GMO Standards, Endogenous Policy and the Market for Information," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126443, International Association of Agricultural Economists.
  4. Jackson, Lee Ann & Jansen, Marion, 2010. "Risk assessment in the international food safety policy arena. Can the multilateral institutions encourage unbiased outcomes?," Food Policy, Elsevier, vol. 35(6), pages 538-547, December.
  5. Pierpaolo Battigalli & Giovanni Maggi, 2003. "International agreements on product standards: an incomplete-contracting theory," Working Papers 229, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  6. Costinot, Arnaud, 2008. "A comparative institutional analysis of agreements on product standards," Journal of International Economics, Elsevier, vol. 75(1), pages 197-213, May.
  7. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
  8. Kawahara, Shinya, 2011. "Electoral competition with environmental policy as a second best transfer," Resource and Energy Economics, Elsevier, vol. 33(3), pages 477-495, September.
  9. Mina Baliamoune & Stefan Lutz, 2009. "Preemption, Predation, and Minimum Quality Standards," ICER Working Papers 20-2009, ICER - International Centre for Economic Research.
  10. T.Huw Edwards, 2009. "Regulatory Protection When Firms Move First," Discussion Paper Series 2009_19, Department of Economics, Loughborough University, revised Nov 2009.

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