Standard, Reputation and Trade: Evidence from U.S horticultural imports refusals
AbstractThis paper investigates the impact of food safety standards promulgated by governments or imposed by byers from the private sector on the capacity of developing countries to access developed countries' markets for high value agricultural and food products. I offer an analysis that disentangles productivity-sorting from quality-sorting in fresh fruits and vegetables exports. My theoretical model and empirical analysis confirms the importance of taking into consideration importers' preference for quality as well as exporters' capacity to produce quality products when analyzing average export unit prices of fresh fruits and vegetables. Thanks to a new database on U.S import refusals, my empirical analysis shows that a shock to reputation seems to have a downgrading effect, reducing the capacity of countries to export quality products.
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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 28111.
Date of creation: 2011
Date of revision:
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SPS; agricultural trade; quality sorting; reputation;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-04-30 (Agricultural Economics)
- NEP-ALL-2011-04-30 (All new papers)
- NEP-INT-2011-04-30 (International Trade)
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