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Understanding the Real-World Impact of Geographical Indications: A Critical Review of the Empirical Economic Literature

Author

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  • Áron Török

    (Department of Agribusiness, Institute for the Development of Enterprises, Corvinus University of Budapest, 1093 Budapest, Hungary)

  • Lili Jantyik

    (Department of Agribusiness, Institute for the Development of Enterprises, Corvinus University of Budapest, 1093 Budapest, Hungary)

  • Zalán Márk Maró

    (Department of Agribusiness, Institute for the Development of Enterprises, Corvinus University of Budapest, 1093 Budapest, Hungary)

  • Hazel V. J. Moir

    (Centre for European Studies, Research School of Social Sciences, Australian National University, Canberra 2600, Australia)

Abstract

In our study, we tried to collect empirical studies focusing on the economic impact of Geographical Indications (GIs). Using a systematic literature review approach, we investigated three different aspects: market size, price premium and impacts on rural development. Based on the findings of studies both from the grey and academic literature, the results are quite mixed. Though the number of GI-related empirical studies has risen in recent years, there is a lack of economic data to support policies related to GIs, even in the European Union (EU), where the most important GI system exists. Overall, it is impossible to draw any general conclusions about the economic impact of GIs. Some countries have remarkable GI market size, and some GI products have a determinative role in both domestic and export markets; however, it is not general. Again, some particular GI products of some regions could gain significant price premiums, but due to the associated higher production costs and unequal distribution in the value chain, it might not result in higher producer incomes. The most conflicting empirical results were found in how GIs can contribute to regional prosperity, as evidences of the harmful effects of GIs on rural development were also identified.

Suggested Citation

  • Áron Török & Lili Jantyik & Zalán Márk Maró & Hazel V. J. Moir, 2020. "Understanding the Real-World Impact of Geographical Indications: A Critical Review of the Empirical Economic Literature," Sustainability, MDPI, vol. 12(22), pages 1-24, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9434-:d:444159
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    2. Riccardo Crescenzi & Fabrizio De Filippis & Mara Giua & Cristina Vaquero-Piñeiro, 2022. "Geographical Indications and local development: the strength of territorial embeddedness," Regional Studies, Taylor & Francis Journals, vol. 56(3), pages 381-393, March.
    3. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2022. "Predicting agri-food quality across space: A Machine Learning model for the acknowledgment of Geographical Indications," Food Policy, Elsevier, vol. 112(C).
    4. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2023. "Taste of home: Birth town bias in Geographical Indications," Economics & Statistics Discussion Papers esdp23089, University of Molise, Department of Economics.
    5. Filippis, Fabrizio De & Giua, Mara & Salvatici, Luca & Vaquero-Pineiro, Cristina, 2021. "The International Competitiveness of Geographical Indications: Hype or Hope?," 2021 Conference, August 17-31, 2021, Virtual 315147, International Association of Agricultural Economists.
    6. Meyer, Camille & Naicker, Kiruben, 2023. "Collective intellectual property of Indigenous peoples and local communities: Exploring power asymmetries in the rooibos geographical indication and industry-wide benefit-sharing agreement," Research Policy, Elsevier, vol. 52(9).
    7. De Filippis, Fabrizio & Giua, Mara & Salvatici, Luca & Vaquero-Piñeiro, Cristina, 2022. "The international trade impacts of Geographical Indications: Hype or hope?," Food Policy, Elsevier, vol. 112(C).
    8. Áron Török & Ching-Hua Yeh & Davide Menozzi & Péter Balogh & Péter Czine, 2023. "Consumers' preferences for processed meat: a best–worst scaling approach in three European countries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-24, December.

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