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Standards, reputation, and trade: evidence from US horticultural import refusals




By disentangling productivity- from quality-sorting in horticultural exports, this paper investigates the impact of food safety standards and consumers’ preference for quality on developing countries’ capacity to export high care and differentiated agricultural products (HCAs). Using a unique database on US import refusals, the empirical analysis shows that a shock to reputation has a downgrading effect, reducing the capacity to participate and benefit from trade in HCAs. The occurrence of at least one refusal in the current year reduces HS 6-digit average unit export price by over 8% and the long-run propensity suggests a 25% cut.

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  • Jouanjean, Marie-Agnès, 2012. "Standards, reputation, and trade: evidence from US horticultural import refusals," World Trade Review, Cambridge University Press, vol. 11(03), pages 438-461, July.
  • Handle: RePEc:cup:wotrrv:v:11:y:2012:i:03:p:438-461_00

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    References listed on IDEAS

    1. Chunlai Chen & Jun Yang & Christopher Findlay, 2008. "Measuring the Effect of Food Safety Standards on China’s Agricultural Exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(1), pages 83-106, April.
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    6. John Hudson & Philip Jones, 2003. "International trade in 'quality goods': signalling problems for developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 999-1013.
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    8. Cheng Fang & John C. Beghin, 2000. "Food Self-Sufficiency, Comparative Advantage, and Agricultural Trade: A Policy Analysis Matrix for Chinese Agriculture," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp223, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    9. Maskus, Keith E. & Otsuki, Tsunehiro & Wilson, John S., 2005. "The cost of compliance with product standards for firms in developing countries: an econometric study," Policy Research Working Paper Series 3590, The World Bank.
    10. G. M. Peter Swann, 2010. "International Standards and Trade: A Review of the Empirical Literature," OECD Trade Policy Papers 97, OECD Publishing.
    11. de Melo, Jaime & Portugal-Pérez, Alberto, 2008. "Rules of Origin, Preferences and Diversification in Apparel: African Exports to the US and to the EU," CEPR Discussion Papers 7072, C.E.P.R. Discussion Papers.
    12. Alberto Portugal‐Perez & José‐Daniel Reyes & John S. Wilson, 2010. "Beyond the Information Technology Agreement: Harmonisation of Standards and Trade in Electronics," The World Economy, Wiley Blackwell, vol. 33(12), pages 1870-1897, December.
    13. Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
    14. Broughton, Edward I. & Walker, Damian G., 2010. "Policies and practices for aquaculture food safety in China," Food Policy, Elsevier, vol. 35(5), pages 471-478, October.
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    16. Knut Blind & Andre Jungmittag, 2005. "Trade and the impact of innovations and standards: the case of Germany and the UK," Applied Economics, Taylor & Francis Journals, vol. 37(12), pages 1385-1398.
    17. Julie A. Caswell & Neal H. Hooker, 1996. "HACCP as an International Trade Standard," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 775-779.
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    Cited by:

    1. Jouanjean, Marie-Agnès & Maur, Jean-Christophe & Shepherd, Ben, 2015. "Reputation matters: Spillover effects for developing countries in the enforcement of US food safety measures," Food Policy, Elsevier, vol. 55(C), pages 81-91.
    2. Daniele Curzi & Lucia Pacca & Alessandro Olper, 2013. "Estimating Food Quality from Trade Data: An Empirical Assessment," LICOS Discussion Papers 33913, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Beghin, John C. & Disdier, Anne-Celia & Marette, Stephan, 2012. "Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures," 2012: New Rules of Trade?, December 2012, San Diego, California 142775, International Agricultural Trade Research Consortium.
    4. Kumar, C Nalin, 2016. "Sensitivity of India’s agri-food exports to the European union: An institutional perspective," Working Papers 366, Institute for Social and Economic Change, Bangalore.
    5. Beghin, John C. & Disdier, Anne-Celia & Marette, Stephan, 2012. "Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures," Working Papers 142386, International Agricultural Trade Research Consortium.
    6. repec:bla:jcmkts:v:55:y:2017:i:2:p:387-405 is not listed on IDEAS
    7. Curzi, Daniele & Raimondi, Valentina & Olper, Alessandro, 2013. "Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152387, International Agricultural Trade Research Consortium.
    8. repec:hal:gmonwp:hal-00961727 is not listed on IDEAS
    9. Jouanjean, Marie-Agnes & Maur, Jean-Christophe & Shepherd, Ben, 2011. "Reputation matters: Spillover effects in the enforcement of US SPS measures," MPRA Paper 35270, University Library of Munich, Germany.

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