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Trade, Standards, and the Political Economy of Genetically Modified Food

Author

Listed:
  • Kym Anderson

    (World Bank)

  • Richard Damania

    (School of Economics, University of Adelaide)

  • Lee Ann Jacskon

    (WTO Secretariat, Geneva)

Abstract

A common-agency lobbying model is developed to help understand why North America and the European Union have adopted such different policies towards genetically modified food. Our results show that when firms (in this case farmers) lobby policy makers to influence standards and consumers and environmentalists care about the choice of standard, it is possible that increased competition from abroad can lead to strategic incentives to raise standards, not just lower them as shown in earlier models. This theoretical proposition is supported by numerical results from a global general equilibrium model of GM adoption in America without and with an EU moratorium.

Suggested Citation

  • Kym Anderson & Richard Damania & Lee Ann Jacskon, 2004. "Trade, Standards, and the Political Economy of Genetically Modified Food," Centre for International Economic Studies Working Papers 2004-10, University of Adelaide, Centre for International Economic Studies.
  • Handle: RePEc:adl:cieswp:2004-10
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    File URL: http://www.adelaide.edu.au/cies/papers/0410.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kareem, Fatima Olanike & Martínez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2018. "Protecting health or protecting imports? Evidence from EU non-tariff measures," International Review of Economics & Finance, Elsevier, vol. 53(C), pages 185-202.
    2. Meloni, Giulia & Swinnen, Johan, 2018. "Trade and terroir. The political economy of the world’s first geographical indications," Food Policy, Elsevier, vol. 81(C), pages 1-20.
    3. Johan F.M. Swinnen & Thijs Vandemoortele, 2008. "The Political Economy of Nutrition and Health Standards in Food Markets ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 460-468.
    4. Giulia Meloni & Johan Swinnen, 2017. "Standards, Tariffs and Trade: The Rise and Fall of the Raisin Trade Between Greece and France in the Late 19th Century and the Definition of Wine," LICOS Discussion Papers 38617, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    5. Olivier CADOT & Lili Yan ING, 2017. "Ad-valorem equivalents of NTMs in ASEAN," Working Papers P203, FERDI.
    6. Vigani, Mauro & Olper, Alessandro, 2013. "GMO standards, endogenous policy and the market for information," Food Policy, Elsevier, vol. 43(C), pages 32-43.
    7. Johan F.M. Swinnen & Scott Rozelle & Tao Xiang & Thijs Vandemoortele, 2008. "A Theory of Standards-Driven Rural Development," LICOS Discussion Papers 19908, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    8. Beverelli, Cosimo & Boffa, Mauro & Keck, Alexander, 2014. "Trade policy substitution: Theory and evidence from Specific Trade Concerns," WTO Staff Working Papers ERSD-2014-18, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    10. Ana Santos & Jose Caetano, 2008. "EU regulation concerning genetically modified products: an issue of food security or a measure of disguised protectionism?," CEFAGE-UE Working Papers 2008_10, University of Evora, CEFAGE-UE (Portugal).

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    More about this item

    Keywords

    GMOs; political economy; regulation of standards; trade policy.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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