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Impact of GlobalGAP Certification on EU Banana Imports: A Gravity Modeling Approach

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  • Masood, Amjad
  • Brümmer, Bernhard

Abstract

Adopting a gravity framework and using data from 2010 to 2012 for 74 countries, we investigate whether the intensity of GlobalGAP standard adoption has a positive impact on EU banana import values. Intensity is measured by using number of GlobalGAP certified producers and hectares harvested under GlobalGAP certification. Using random and fixed effect estimation we find that intensity of certification, in terms of producers and hectares are associated with higher banana imports. However the estimated elasticities of imports in all models are less than 1 indication an inelastic response of imports to GlobalGAP certification intensity. This also indicates that the small farmers in developing countries who find it difficult to comply with the GlobalGAP standard requirements are driven out of the international banana market. For the gravity variables distance is found to have negative impact, but banana production in the exporting countries and presence of common language and RTA between the trading countries improves trade.

Suggested Citation

  • Masood, Amjad & Brümmer, Bernhard, 2014. "Impact of GlobalGAP Certification on EU Banana Imports: A Gravity Modeling Approach," GlobalFood Discussion Papers 187539, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  • Handle: RePEc:ags:gagfdp:187539
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    File URL: http://ageconsearch.umn.edu/record/187539/files/GlobalFood_DP49.pdf
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    Cited by:

    1. Ehrich, Malte & Hess, Sebastian, 2015. "The Ability of Organisations to Adopt Foreign Trade Standards," GlobalFood Discussion Papers 211024, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Ehrich, Malte & Mangelsdorf, Axel, 2016. "The Role of Private Standards for Manufactured Food Exports from Developing Countries," GlobalFood Discussion Papers 243400, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.

    More about this item

    Keywords

    Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Industrial Organization; International Relations/Trade;

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