Welfare Assessment of SPS Standards: An Empirical Study of Indo-US Mango Trade Case
Sanitary and phytosanitary (SPS) standards under WTOâ€™s ambit have gained prominence in recent years. However, due to mostly thin evidence, standards are set at prohibitively high levels, inducing sub-optimal outcomes. One such case is of mango trade between India and USA. The US banned import of Indian mangoes from 1989 to 2006 and permitted it thereafter under strict treatment and inspection standards. This study has examined the impact of various policy options on the two trading partners and has explored if the benefit from a higher standard regime is worth the marginal effort. Welfare impact of mango trade on India and US under four policy options (trade ban, nuclear irradiation, hot water treatment, and free trade) has been estimated using partial equilibrium framework with stylized microeconomic models. The study has suggested that policy choices of both the nations are consistent with their respective payoff estimates. However, if India undertakes to compensate the US for any losses due to an India-favouring policy, both the nations may gain more through trade; thereby, implying that there is social improvement if the gainers can fully compensate the losers and still be better off (Kaldor-Hicks efficient outcome).
Volume (Year): 25 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.geocities.com/aeraindia/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Islam, Nurul, 1990. "Horticultural exports of developing countries: past performances, future prospects, and policy issues," Research reports 80, International Food Policy Research Institute (IFPRI).
- Surabhi Mittal, 2006.
"Structural Shift in Demand for Food - Projections for 2020,"
Macroeconomics Working Papers
22223, East Asian Bureau of Economic Research.
- Surabhi Mittal, 2010. "Structural Shift in Demand for Food: Projections for 2020," Working Papers id:2788, eSocialSciences.
When requesting a correction, please mention this item's handle: RePEc:ags:aerrae:137351. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.