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SPS Regulations and Competitiveness

Author

Listed:
  • C. Nalin Kumar
  • V.R. Muraleedharan

    (C. Nalin Kumar (corresponding author) and V.R. Muraleedharan are at the Department of Humanities and Social Sciences, Indian Institute of Technology Madras, India. E-mail: nalin@iitm.ac.in)

Abstract

This article investigates India's export performance of spices (whole pepper and capsicum) in the markets of the Organization for Economic Cooperation and Development (OECD) and South and Southeast Asia, which constitute a substantial market for Indian spices. A Constant Market Share model is used to decompose the growth in exports of spices into size of the market effect, market composition effect and competitiveness effect. The analysis is performed for the exports during the nineties, the period India had to resort to increased challenges of food safety. The study confirms that there has not been substantial trade effect for Indian spices due to quality issues, such as sanitary and phytosanitary regulations. This article argues that increase in exports to neighbouring regions is explained more by the increased demand and supply and not by the stringent quality requirements of traditional importing countries.

Suggested Citation

  • C. Nalin Kumar & V.R. Muraleedharan, 2007. "SPS Regulations and Competitiveness," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(2), pages 335-346, December.
    • Handle: RePEc:sae:soueco:v:8:y:2007:i:2:p:335-346
    DOI: 10.1177/139156140700800208
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    References listed on IDEAS

    as
    1. Richardson, J David, 1971. "Some Sensitivity Tests for a 'Constant-Market-Shares' Analysis of Export Growth," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 300-304, August.
    2. Henson, Spencer & Loader, Rupert, 2001. "Barriers to Agricultural Exports from Developing Countries: The Role of Sanitary and Phytosanitary Requirements," World Development, Elsevier, vol. 29(1), pages 85-102, January.
    3. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
    4. Merkies, A H Q M & van der Meer, T, 1988. "A Theoretical Foundation for Constant Market Share Analysis," Empirical Economics, Springer, vol. 13(2), pages 65-80.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    JEL: F14; JEL: F18; JEL: Q17; JEL: Q18; Competitiveness; Sanitary Regulations; Spice Trade; Constant Market Share Model;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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