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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. Sampath Jayasinghe & John C. Beghin & GianCarlo Moschini, 2009. "Determinants of World Demand for U.S. Corn Seeds: The Role of Trade Costs," Center for Agricultural and Rural Development (CARD) Publications 09-wp484, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. 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.
  3. Anne-Célia Disdier & Frank van Tongeren, 2010. "Non-Tariff Measures in Agri-Food Trade: What Do the Data Tell Us? Evidence from a Cluster Analysis on OECD Imports," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 436-455.
  4. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
  5. 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, vol. 90(2), pages 336-350.
  6. 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.
  7. Lionel Fontagné & Gianluca Orefice & Roberta Piermartini & Nadia Rocha, 2013. "Product Standards and Margins of Trade: Firm Level Evidence," Working Papers 2013-06, CEPII research center.
  8. 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, vol. 91(5), pages 1484-1490.
  9. Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
  10. Sven Anders & Julie Caswell, 2007. "Standards-as-Barriers versus Standards-as-Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," Working Papers 2007-7, University of Massachusetts Amherst, Department of Resource Economics.
  11. Drogué, Sophie & DeMaria, Federica, 2012. "Pesticide residues and trade, the apple of discord?," Food Policy, Elsevier, vol. 37(6), pages 641-649.
  12. 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.
  13. 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, vol. 26(5), pages 495-514, October.
  14. 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.
  15. 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.
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Cited by:
  1. Dorothee Crayen & Christa Hainz & Christiane Ströh de Martinez, 2010. "Remittances, Banking Status and the Usage of Insurance Schemes," CESifo Working Paper Series 3117, CESifo Group Munich.
  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 14011, Institut d'Economie et Econométrie, Université de Genève.

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