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Trade effects of geographical indication policy: The EU case

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  • Valentina Raimondi
  • Chiara Falco
  • Daniele Curzi
  • Alessandro Olper

Abstract

Using a new detailed dataset on country‐product information on European Union (EU) Geographical Indications (GIs), we study the impact of this food quality policy on trade margins over the 1996–2014 period. We consider the effect of GIs on both intra‐ and extra‐EU trade margins (extensive and intensive), as well as on export (and import) unit values. Our main results show that GIs affect trade flows differently depending on whether GIs are produced by the exporter or importer country. The presence of GIs in the exporter country systematically exerts a positive trade effect on both the extensive and intensive trade margin. When registered only in the importer country, GIs seem to act weakly as a trade‐reducing measure, at least at the intensive trade margin. In addition, GIs positively affect export prices, consistent with the idea that GI products are perceived by consumers as higher quality goods. Importantly, extra‐EU trade margins react similarly to those on intra‐EU trade. These results have clear and interesting implications concerning the EU strategy of promoting the protection of GIs worldwide.

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  • Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    • Handle: RePEc:bla:jageco:v:71:y:2020:i:2:p:330-356
    DOI: 10.1111/1477-9552.12349
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    3. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    4. Huysmans, Martijn, 2021. "On Feta and Fetta: Protecting EU Geographical Indications Down Under," 2021 Conference, August 17-31, 2021, Virtual 314978, International Association of Agricultural Economists.
    5. Imre Fertő & Zoltán Bakucs & Jan Fałkowski, 2021. "Dairy sector trade dynamics: Some insights on the evolution of trade linkages within the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 698-711, September.
    6. De Filippis, Fabrizio & Giua, Mara & Salvatici, Luca & Vaquero-Piñeiro, Cristina, 2022. "The international trade impacts of Geographical Indications: Hype or hope?," Food Policy, Elsevier, vol. 112(C).
    7. M. Huysmans, 2019. "Exporting protection: EU trade agreements, geographical indications, and gastronationalism," Working Papers 19-26, Utrecht School of Economics.
    8. Tobias Chilla & Benedikt Fink & Richard Balling & Simon Reitmeier & Karola Schober, 2020. "The EU Food Label ‘Protected Geographical Indication’: Economic Implications and Their Spatial Dimension," Sustainability, MDPI, vol. 12(14), pages 1-21, July.
    9. Daniele Curzi & Martijn Huysmans & Oliver Ken Haase, 2023. "Potable Intellectual Property: WTO TRIPS and EU Geographical Indication Wines," Working Papers 2311, Utrecht School of Economics.
    10. Riccardo Crescenzi & Fabrizio De Filippis & Mara Giua & Cristina Vaquero-Piñeiro, 2022. "Geographical Indications and local development: the strength of territorial embeddedness," Regional Studies, Taylor & Francis Journals, vol. 56(3), pages 381-393, March.
    11. Martijn Huysmans & D. van Noord, 2021. "The market for lemons from Sorrento and Gouda from Holland. Do geographical indications certify origin and quality?: Do geographical indications certify origin and quality?," Working Papers 2108, Utrecht School of Economics.
    12. Crescenzi, Riccardo & De Filippis, Fabrizio & Giua, Mara & Salvatici, Luca & Vaquero Pineiro, Cristina, 2023. "From local to global, and return: geographical Indications and FDI in Europe," LSE Research Online Documents on Economics 120408, London School of Economics and Political Science, LSE Library.
    13. Stranieri, Stefanella & Orsi, Luigi & De Noni, Ivan & Olper, Alessandro, 2023. "Geographical Indications and Innovation: Evidence from EU regions," Food Policy, Elsevier, vol. 116(C).
    14. Martijn Huysmans, 2022. "On Feta and Fetta: Protecting EU geographical indications in Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 598-613, June.
    15. Filippis, Fabrizio De & Giua, Mara & Salvatici, Luca & Vaquero-Pineiro, Cristina, 2021. "The International Competitiveness of Geographical Indications: Hype or Hope?," 2021 Conference, August 17-31, 2021, Virtual 315147, International Association of Agricultural Economists.

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