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Determinants of Worldwide Diffusion of GlobalGAP Certification

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  • Masood, Amjad
  • Brümmer, Bernhard

Abstract

GlobalGAP is an important private standard in food sector. However, geographic diffusion of GlobalGAP is uneven across the world. We use a panel from 2008 to 2012 for 170 FAO member countries to analyze GlobalGAP diffusion in the agricultural sector as a whole as well as in the crops subsector. So far, studies on standards have been mostly dealing with farm level data and very few consider the case of macroeconomic determinants of diffusion only in case of public standards. We, on the other hand, consider the case of a private standard, namely GlobalGAP and estimate the macroeconomic determinants of GlobalGAP diffusion. For estimation, a Heckman two-stage model is applied using number of GlobalGAP certified producers as well as hectares of area harvested under GlobalGAP as dependent variables. We analyze the impact of network ties and historical relations among countries, and various macroeconomic conditions prevailing in courtiers on diffusion of certification. The study finds that diffusion is positively related common language, presence of auditing facility domestically and better infrastructure. We also find that countries with higher relative size of fruits and vegetables in the agriculture sector, and with more exports of fruits and vegetables to the EU states have higher coverage of GlobalGAP.

Suggested Citation

  • Masood, Amjad & Brümmer, Bernhard, 2014. "Determinants of Worldwide Diffusion of GlobalGAP Certification," GlobalFood Discussion Papers 187537, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    • Handle: RePEc:ags:gagfdp:187537
    DOI: 10.22004/ag.econ.187537
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    Cited by:

    1. Flachsbarth, Insa & Grassnick, Nina & Masood, Amjad & Bruemmer, Bernhard, 2018. "The Uneven Spread of Private Food Quality Standards over Time and Space," 2018 Annual Meeting, August 5-7, Washington, D.C. 274197, Agricultural and Applied Economics Association.
    2. Kleemann, Linda, 2016. "The relevance of business practices in linking smallholders and large agro-businesses in Sub-Sahara Africa," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.

    More about this item

    Keywords

    Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Industrial Organization; International Relations/Trade; Marketing;
    All these keywords.

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