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Geographical indication regulation and intra-trade in the European Union

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  • Zakaria Sorgho
  • Bruno Larue

Abstract

Protection of indications of geographical origin (GIs) can reduce information asymmetry between producers and consumers, and potentially enhance trade. However, GIs can also possibly divert trade. We rely on panel data about agri-food trade among the 27 countries of the European Union to investigate these issues using variations of estimators proposed by Head and Mayer ( ) and Santos Silva and Tenreyro ( ). Our findings suggest that the protection of GIs creates trade when the importing and exporting countries have GI-protected products. There is also empirical evidence regarding a trade-diverting effect when the importing country does not have GIs and a border enlargement effect arising from European GI-protection.

Suggested Citation

  • Zakaria Sorgho & Bruno Larue, 2014. "Geographical indication regulation and intra-trade in the European Union," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 1-12, November.
  • Handle: RePEc:bla:agecon:v:45:y:2014:i:s1:p:1-12
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    Cited by:

    1. Sorgho, Zakaria, 2014. "RTAs’ Proliferation and Trade-diversion effects: Evidence of the “Spaghetti Bowl” Phenomenon," MPRA Paper 60503, University Library of Munich, Germany.
    2. Zakaria Sorgho, 2016. "RTAs' Proliferation and Trade-diversion Effects: Evidence of the ‘Spaghetti Bowl’ Phenomenon," The World Economy, Wiley Blackwell, vol. 39(2), pages 285-300, February.
    3. Raimondi, Valentina & Falco, Chiara & Curzi, Daniele & Olper, Alessandro, 2016. "Estimating the trade effects of the EU food quality policy," 149th Seminar, October 27-28, 2016, Rennes, France 244795, European Association of Agricultural Economists.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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