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Food Safety Standards and Export Competitiveness in the Food and Processed Food Industries in Asia-Pacific Countries

  • Babool, Md. Ashfaqul Islam
  • Reed, Michael R.
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    Developing country producers face several constraints related to food safety standards imposed by developed countries. The purpose of this study is to identify factors affecting export flows with respect to food safety standards; and to measure the effects of food safety standards on exports. This study incorporates a food safety variable in a gravity model. The analysis uses aggregate data for bilateral exports of processed food products, and data for factors affecting bilateral export flows for 17 years on 16 OECD and Asia-Pacific countries. The results show that food product exports are negatively affected by aflatoxin standards. A one percent increase in food safety standards decrease exports by approximately one percent. This means that large changes in food standards (which are common these days) will have salutary, deleterious impacts on food exports by developing countries.

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    Paper provided by European Association of Agricultural Economists in its series 103rd Seminar, April 23-25, 2007, Barcelona, Spain with number 9399.

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    Date of creation: 2007
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    Handle: RePEc:ags:eaa103:9399
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    1. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
    2. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
    3. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
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