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The Role of Private Standards for Manufactured Food Exports from Developing Countries

Author

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  • Ehrich, Malte
  • Mangelsdorf, Axel

Abstract

The effect of food standards on agricultural trade flows remains unclear. We contribute to the debate with a unique dataset that contains the number of food processing firms of 88 countries from 2008 to 2013 that are certified with the International Featured Standard (IFS). Based on a theoretical framework that combines Melitz-type firm heterogeneity with quality upgrading, we estimate a gravity-model using the one-year lag of IFS as well as modern grocery distribution as an Instrument to address potential endogeneity. We find that IFS increases c.p. bilateral exports on average of seven agricultural product categories in both specifications. However, the effect remains only for upper- and middle-income countries once we separate by income and turns even negative for low income countries in the IV-specification. Hence, whereas IFS increases exports on average, it has a trade-impeding effect for low-income countries. Therefore, private standards are not a sufficient development policy tool to integrate low-income countries to the world trading system without being accompanied by other measures.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:gagfdp:243400
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    File URL: http://ageconsearch.umn.edu/record/243400/files/GlobalFood_DP85.pdf
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    References listed on IDEAS

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    Cited by:

    1. Fiankor, Dela-Dem Doe & Flachsbarth, Insa & Masood, Amjad & Brümmer, Bernhard, 2017. "Does GlobalGAP certification promote agrifood exports?," GlobalFood Discussion Papers 265632, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. repec:ags:ijofsd:277718 is not listed on IDEAS

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    Keywords

    International Development; International Relations/Trade;

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