GMO Regulations, International Trade and the Imperialism of Standards
AbstractThis paper deals with the quantification of GMO regulations on bilateral trade flows. A composite index of the æ…¶omplexity?of such regulations for sixty countries as well as an æ†ƒbjective?score for six GMO regulatory sub-dimensions has been developed. Using a gravity model, we show how bilateral æ†‡imilarity?in GMO regulations, affect trade flows for the composite index and its components. Results show that bilateral distance in GMO regulations negatively affect trade flows, especially as an effect of labeling policies, approval process and traceability systems. Interesting, the trade reduction effect induced by GMO standards increase by a factor of four when GMO regulations is treated as endogenous to trade flows. This pattern is consistent with an international environment where large importing countries æ…¸ictate?the rules of the game to developing countries.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 25510.
Date of creation: 2010
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GMO standards; Harmonization; Trade Flow; Gravity Model; Endogeneity;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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