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Non-tariff Barriers to Trade Caused by SPS Measures and Customs Procedures with Product Quality Changes

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  • Liu, Lan
  • Yue, Chengyan

Abstract

This study develops a methodology to quantify the combined effects of two major nontariff barriers (NTBs), sanitary and phytosanitary (SPS) measures and customs and administrative procedures. We employ a constant elasticity of substitution (CES) utility function with factor-augmenting technical progress to incorporate changes in the quality of goods. We then estimate the effects of these two NTBs in the Japanese cut flower market. Results show that estimates of SPS are biased without considering product quality changes caused by the customs and administrative procedures for highly perishable agricultural products. If these Japanese NTBs were removed, findings suggest there would be a significant increase in cut flower imports by Japan.

Suggested Citation

  • Liu, Lan & Yue, Chengyan, 2009. "Non-tariff Barriers to Trade Caused by SPS Measures and Customs Procedures with Product Quality Changes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), April.
  • Handle: RePEc:ags:jlaare:50087
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    File URL: http://purl.umn.edu/50087
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    References listed on IDEAS

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    1. Bureau, Jean-Christophe & Marette, Stephan & Schiavina, Alessandra, 1998. "Non-tariff Trade Barriers and Consumers' Information: The Case of the EU-US Trade Dispute over Beef," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(4), pages 437-462.
    2. Barrett, Christopher B. & Li, Jau-Rong & Bailey, DeeVon, 2000. "Factor And Product Market Tradability And Equilibrium In Pacific Rim Pork Industries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
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    4. John C. Beghin, 2006. "Nontariff Barriers," Center for Agricultural and Rural Development (CARD) Publications 06-wp438, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. John C. Beghin & Jean-Christophe Bureau, 2017. "Quantitative Policy Analysis Of Sanitary, Phytosanitary And Technical Barriers To Trade," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 3, pages 39-62 World Scientific Publishing Co. Pte. Ltd..
    6. Steen, Marie, 2006. "Flower Power at the Dutch Flower Auctions? Application of an Inverse Almost Ideal Demand System," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25441, International Association of Agricultural Economists.
    7. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-822, December.
    8. Calvin, Linda & Krissoff, Barry, 1998. "Technical Barriers To Trade: A Case Study Of Phytosanitary Barriers And U.S. - Japanese Apple Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
    9. Hildegunn Kyvik Nordås & Enrico Pinali & Massimo Geloso Grosso, 2006. "Logistics and Time as a Trade Barrier," OECD Trade Policy Papers 35, OECD Publishing.
    10. Norbert Wilson, 2007. "Examining the Trade Effect of Certain Customs and Administrative Procedures," OECD Trade Policy Papers 42, OECD Publishing.
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    Citations

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    Cited by:

    1. Liu, Lan & Yue, Chengyan, 2013. "Investigating the impacts of time delays on trade," Food Policy, Elsevier, vol. 39(C), pages 108-114.
    2. Bo Xiong & John Beghin, 2017. "Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 6, pages 105-108 World Scientific Publishing Co. Pte. Ltd..
    3. Soon, Byung Min & Thompson, Wyatt, 2016. "Measuring Non-Tariff Barriers by Combining Cointegration Tests and Simulation Models with an Application to Russian Chicken Imports," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235738, Agricultural and Applied Economics Association.
    4. Qianhui Gao & Shoichi Ito & Kolawole Ogundari & Hisamitsu Saito, 2016. "Evaluating Welfare Effects of Rice Import Quota in Japan: Based on Measuring Non-Tariff Barriers of SBS Rice Imports," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-13, August.
    5. Xiong, Bo, 2012. "Three essays on non-tariff measures and the gravity equation approach to trade," ISU General Staff Papers 201201010800003536, Iowa State University, Department of Economics.
    6. Rickard, Bradley J. & Lei, Lei, 2010. "How important are sanitary and phytosanitary barriers in international markets for fresh fruit?," Working Papers 126974, Cornell University, Department of Applied Economics and Management.
    7. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(1), pages 31-57.
    8. Lawley, Chad, 2013. "Protectionism versus risk in screening for invasive species," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 438-451.
    9. Xiong, Bo & Beghin, John C., 2011. "Disentangling the Demand-enhancing Effect and Trade-cost Effect of Technical Measures in Agricultural Trade among OECD countries," Proceedings Issues, 2011: Agricultural Price Volatility, Trade Policy and Food Security in Developing Countries, December 2011, St. Petersburg, FL 116898, International Agricultural Trade Research Consortium.

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