IDEAS home Printed from https://ideas.repec.org/a/aaw/grrjrn/v2y2017i1p177-196.html
   My bibliography  Save this article

The Political Economy of Standards: Does MRLs Matter in Cottonseed and its Trade?

Author

Listed:
  • Fazal Hadi

    (PhD Scholar,Department of Economics, Abdul Wali Khan University, Mardan, KP, Pakistan.)

  • Zahoor Ul Haq

    (Professor and Dean, Faculty of Business and Economics,Abdul Wali Khan University Mardan, KP, Pakistan.)

  • Javid Iqbal

    (Assistant Professor, Department of Economics, Abdul Wali Khan University Mardan, KP, Pakistan.)

Abstract

In this paper, we introduce three indices of trade which are consequently applied to the case maximum residue level, MRLs of pesticide. The aggregation indices of NTM i.e Li and Beghin index of trade, Heterogeneous index of trade (HIT) and actual heterogeneous index of trade (AHIT) regulations to compute their protectionism relative to international standards. The application of indices to Maximum Residue Limit (MRL) affecting cottonseed and its by-product i.e crude cottonseed oil and refined cottonseed oil, using a science-based standards Codex Alimentarius. In this analysis, the main aim of the article is to show the response of the maximum residue limits (MRLs) adopted by 50 importing countries on exports of the cottonseed commodities for the year 2005 to 2014. In this study, we estimate the augmented gravity model using the ordinary least squares (OLS) and Poisson regression estimators. The results show that maximum residue limits (MRLs) have a trade increasing effect on exports of the cottonseed commodities.

Suggested Citation

  • Fazal Hadi & Zahoor Ul Haq & Javid Iqbal, 2017. "The Political Economy of Standards: Does MRLs Matter in Cottonseed and its Trade?," Global Regional Review, Humanity Only, vol. 2(1), pages 177-196, June.
    • Handle: RePEc:aaw:grrjrn:v:2:y:2017:i:1:p:177-196
    DOI: 10.31703/grr.2017(II-I).13
    as

    Download full text from publisher

    File URL: https://grrjournal.com/jadmin/Auther/31rvIolA2LALJouq9hkR/s31L3X24iM.pdf
    Download Restriction: no
    File URL: https://www.grrjournal.com/issue/The-Political-Economy-of-Standards-Does-MRLs-Matter-in-Cottonseed-and-its-Trade
    Download Restriction: no
    File URL: https://libkey.io/10.31703/grr.2017(II-I).13?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zahoor Ul Haq & Karl Meilke & John Cranfield, 2013. "Selection bias in a gravity model of agrifood trade," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 331-360, March.
    2. Bergstrand, Jeffrey H, 1990. "The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-industry Trade," Economic Journal, Royal Economic Society, vol. 100(403), pages 1216-1229, December.
    3. Achterbosch, Thom J. & Engler, Alejandra & Rau, Marie-Luise & Toledo, Roger, 2009. "Measure the measure: the impact of differences in pesticide MRLs on Chilean fruit exports to the EU," 2009 Conference, August 16-22, 2009, Beijing, China 51765, International Association of Agricultural Economists.
    4. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mehdi Raissi & GholamAli Raissi Ardali, 2005. "The Role of Preferential Trade Agreement (PTA) between Iran and Malaysia in their Intra industry Trade (IIT)," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 10(1), pages 85-104, spring.
    2. Paas, Tiiu, 2002. "Gravity Approach for Exploring Baltic Sea Regional Integration in the Field of International Trade," Discussion Paper Series 26379, Hamburg Institute of International Economics.
    3. Imre Fertő & Szilárd Podruzsik & Jeremiás Balogh, 2016. "Intra-industry trade in the wine sector in the enlargedEuropean Union," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(3), pages 159-172.
    4. Yushi Yoshida & Nuno Carlos Leitão & Horácio Faustino, 2008. "Intra-Industry Trade between Japan and European Countries: a Closer Look at the Quality Gap in VIIT," Working Papers Department of Economics 2008/53, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    5. Federica Demaria & Sophie S. Drogue, 2012. "Protéger la santé ou le commerce un dilemme pour les aliments pour bébés," Post-Print hal-02745379, HAL.
    6. Haq, Zahoor Ul & Meilke, Karl D., 2008. "Differentiated Agri-Food Product Trade and the Linder Effect," Working Papers 46629, Canadian Agricultural Trade Policy Research Network.
    7. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
    8. Daunfeldt, Sven-Olov & Engberg, Erik & Halvarsson, Daniel & Kokko, Ari & Tingvall, Patrik, 2019. "Wholesale firms: A catalyst for Swedish exports?," Ratio Working Papers 328, The Ratio Institute.
    9. Das, Gouranga G., 2002. "Cross-Country Analysis of Empirical Evidences of Intra-industry Trade in Manufactures for Dynamic Asian and Other Developing Economies: Implications for Economic Growth and Development," MPRA Paper 37916, University Library of Munich, Germany, revised 2002.
    10. Chengang Wang & Yingqi Wei & Xiaming Liu, 2010. "Determinants of Bilateral Trade Flows in OECD Countries: Evidence from Gravity Panel Data Models," The World Economy, Wiley Blackwell, vol. 33(7), pages 894-915, July.
    11. Sergey Savchenko & Olena Sukach, 2020. "Home Bias and European Integration," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 60-78.
    12. Paas, Tiiu, 2002. "Gravity approach for exploring Baltic Sea regional integration in the field of international trade," HWWA Discussion Papers 180, Hamburg Institute of International Economics (HWWA).
    13. Joan A. Martín & Vicente Orts, 2001. "A two-stage analysis of monopolistic competition models of intraindustry trade," Investigaciones Economicas, Fundación SEPI, vol. 25(2), pages 315-333, May.
    14. Jan Van Hove, 2008. "The Impact of R&D Spillovers on Export Value: Does the Transmission Channel matter?," Working Papers 2008.3, International Network for Economic Research - INFER.
    15. Manuel Cabral & Rod Falvey & Chris Milner, 2013. "Endowment Differences and the Composition of Intra-Industry Trade," Review of International Economics, Wiley Blackwell, vol. 21(3), pages 401-418, August.
    16. Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
    17. Das, Gouranga G., 2007. "Intra-Industry Trade and Development: Revisiting Theory, Measurement and New Evidences," MPRA Paper 37260, University Library of Munich, Germany, revised 01 Sep 2008.
    18. Fertő, Imre, 2006. "Vertikálisan és horizontálisan differenciált, ágazaton belüli kereskedelem az Európai Unió tejpiacán [Trade within vertically and horizontally differentiated industries on the milk market of the Eu," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 526-539.
    19. Don Clark & Denise Stanley, 2003. "Determinants Of Intraindustry Trade Between The United States And Industrial Nations," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 1-17.
    20. Yongcheol Shin & Laura Serlenga, 2007. "Gravity models of intra-EU trade: application of the CCEP-HT estimation in heterogeneous panels with unobserved common time-specific factors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 361-381.

    More about this item

    Keywords

    Cottonseed; Poisson; OLS; and MRLs;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aaw:grrjrn:v:2:y:2017:i:1:p:177-196. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M Imran Khan (email available below). General contact details of provider: http://www.humanityonly.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.