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The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows

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  • Pramila Crivelli
  • Jasmin Gröschl

Abstract

In an attempt to disentangle the impact of sanitary and phytosanitary (SPS) measures on trade patterns, we estimate a Heckman selection model on the HS4 disaggregated level of trade. We find that aggregated SPS measures constitute barriers to agricultural and food trade consistently to all exporters. But conditional on market entry, trade flows are positively affected by SPS measures. Additionally, we find that SPS measures related to conformity assessment hamper market entry and trade flows, while SPS measures related to product characteristics pose an entry barrier but increase bilateral trade flows conditional on meeting the standard.

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Bibliographic Info

Paper provided by Institut d'Economie et Econométrie, Université de Genève in its series Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva with number 12092.

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Length: 35 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:gen:geneem:12092

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Keywords: Agriculture; International Trade; Sanitary and PhytosanitaryMeasures; Conformity Assessment; Heckman Selection Model;

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References

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  1. Sophie Drogue & Federica DeMaria, 2012. "Pesticide residues and trade, the apple of discord?," Working Papers 171676, Institut National de la Recherche Agronomique, France.
  2. Sampath Jayasinghe & John C. Beghin & GianCarlo Moschini, 2010. "Determinants of World Demand for U.S. Corn Seeds: The Role of Trade Costs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 92(4), pages 999-1010.
  3. Kleibergen, F.R. & Paap, R., 2003. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Econometric Institute Research Papers EI 2003-01, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  4. Lionel Gérard Fontagné & Gianluca Orefice & Roberta Piermartini & Nadia Rocha, 2013. "Product Standards and Margins of Trade: Firm Level Evidence," CESifo Working Paper Series 4169, CESifo Group Munich.
  5. Simon W. Schlueter & Christine Wieck & Thomas Heckelei, 2009. "Regulatory Policies in Meat Trade: Is There Evidence for Least Trade-distorting Sanitary Regulations?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 91(5), pages 1484-1490.
  6. Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service.
  7. Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
  8. Xiong, Bo & Beghin, John C., 2011. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers 34936, Iowa State University, Department of Economics.
  9. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2008. "The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 90(2), pages 336-350.
  10. Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
  11. Disdier, Anne-Celia & van Tongeren, Frank W., 2009. "Non-Tariff Measures in Agri-Food Trade: What Does the Data Tell Us? Evidence from a Cluster Analysis on OECD Imports," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51759, International Association of Agricultural Economists.
  12. Bruno Henry de Frahan & Mark Vancauteren, 2006. "Harmonisation of food regulations and trade in the Single Market: evidence from disaggregated data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 337-360, September.
  13. Sven M. Anders & Julie A. Caswell, 2007. "Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 91(2), pages 310-321.
  14. Gebrehiwet, Yemane & Ngqangweni, Simphiwe & Kirsten, Johann F., 2007. "Quantifying the Trade Effect of Sanitary and Phytosanitary Regulations of OECD Countries on South African Food Exports," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), March.
  15. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, Elsevier, vol. 26(5), pages 495-514, October.
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Cited by:
  1. Dorothee Crayen & Christa Hainz & Christiane Stöh de MartÍnez, 2013. "Remittances, Banking Status and the Usage of Insurance Schemes," Journal of Development Studies, Taylor & Francis Journals, vol. 49(6), pages 861-875, June.
  2. Michael Bratt, 2014. "Estimating the bilateral impact of non-tariff measures (NTMs)," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva, Institut d'Economie et Econométrie, Université de Genève 14011, Institut d'Economie et Econométrie, Université de Genève.

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