Nontariff Barriers as Bridge to Cross
AbstractImporting country standards emerge as an effective trade barrier when they exceed those of the exporting country’s domestic market. We introduce a new concept: bridge to cross (BTC), the regulatory gap between the exporting and importing countries. Importer regulations cannot be identified in a gravity model when multilateral resistance is correctly accounted for with exporter-time and importer-time fixed-effects. BTC, however, can be identified because it varies over time and by trading pair. As an application we apply the method to an SPS regulation regarding Aflatoxin contamination in maize. We find that the effect of BTC is higher for poorer countries.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 125025.
Date of creation: Jan 2011
Date of revision:
Nontariff barrier; sanitary and phytosanitary standards (SPS); gravity model; multilateral resistance; bridge to cross; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; International Development; International Relations/Trade; Research Methods/ Statistical Methods; F13; F14; Q17;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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