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Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine
[Identification properties of recent production function estimators]

Author

Listed:
  • Veronika Movchan
  • Leksandr Shepotylo
  • Volodymyr Vakhitov

Abstract

Domestic non-tariff measures (NTM) influence firm’s production and import decisions. We introduce NTMs into a model with heterogeneous firms. NTMs increase the cost of production and play a role of a positive demand shifter. Interplay of these two factors leads to ambiguous impact of NTMs on extensive and intensive margins of trade. We test predictions of the model by looking at food-processing firms in Ukraine in 2008–2013. Evidence shows that more SPS regulations on inputs in upstream industries lead to exports of better quality products. At the same time, mandatory certifications have a negative impact on quality by limiting access of domestic firms to new technologies and equipment.

Suggested Citation

  • Veronika Movchan & Leksandr Shepotylo & Volodymyr Vakhitov, 2020. "Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine [Identification properties of recent production function estimators]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(2), pages 719-751.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:2:p:719-751.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz034
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    Citations

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    Cited by:

    1. Xuejun Wang & Huiying Zhou & Dongmei Su, 2022. "Does the internationalisation of China's agri‐food standards affect export quality upgrading?—Evidence from firm‐product‐level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 887-911, October.
    2. DOAN Thi Thanh Ha & ZHANG Hongyong, 2022. "Technical Barriers to Trade, Product Quality and Trade Margins: Firm-level evidence," Discussion papers 22056, Research Institute of Economy, Trade and Industry (RIETI).
    3. Ghodsi, Mahdi, 2023. "Exploring the ‘non-tariff measures black box’: Whose regulatory NTMs on which products improve the imported quality?," International Economics, Elsevier, vol. 173(C), pages 45-67.
    4. 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.
    5. Oleksandr Shepotylo & Volodymyr Vakhitov & Veronika Movchan & Mariia Panga, 2022. "Non‐tariff measures and productivity of Ukrainian food‐processing firms," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 234-256, February.

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