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GMO Regulations, International Trade and the Imperialism of Standards

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  • Mauro Vigani
  • Valentina Raimondi
  • Alessandro Olper

Abstract

This paper deals with the quantification of GMO regulations on bilateral trade flows. A composite index of the 慶omplexity?of such regulations for sixty countries as well as an 憃bjective?score for six GMO regulatory sub-dimensions has been developed. Using a gravity model, we show how bilateral 憇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 慸ictate?the rules of the game to developing countries.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 25510.

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Date of creation: 2010
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Handle: RePEc:lic:licosd:25510

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Related research

Keywords: GMO standards; Harmonization; Trade Flow; Gravity Model; Endogeneity;

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References

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Citations

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Cited by:
  1. Li, Yuan & Beghin, John C., 2014. "Protectionism indices for non-tariff measures: An application to maximum residue levels," Food Policy, Elsevier, vol. 45(C), pages 57-68.
  2. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
  3. Drogué, Sophie & DeMaria, Federica, 2012. "Pesticide residues and trade, the apple of discord?," Food Policy, Elsevier, vol. 37(6), pages 641-649.
  4. Mauro Vigani & Alesandro Olper, 2012. "GMO Standards, Endogenous Policy and the Market for Information," LICOS Discussion Papers 30612, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Drogué, S. & DeMaria, F., 2012. "« Comparing apples with pears. How differences in pesticide residues regulations impact trade? »," Working Papers MOISA 201201, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France.

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