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Nontariff Barriers as Bridge to Cross

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  • Munasib, Abdul B.A.
  • Roy, Devesh

Abstract

Importing country standards emerge as an effective trade barrier when they exceed those of the exporting country’s domestic market. We introduce a new concept: bridge to cross (BTC), the regulatory gap between the exporting and importing countries. Importer regulations cannot be identified in a gravity model when multilateral resistance is correctly accounted for with exporter-time and importer-time fixed-effects. BTC, however, can be identified because it varies over time and by trading pair. As an application we apply the method to an SPS regulation regarding Aflatoxin contamination in maize. We find that the effect of BTC is higher for poorer countries.

Suggested Citation

  • Munasib, Abdul B.A. & Roy, Devesh, 2011. "Nontariff Barriers as Bridge to Cross," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125025, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:125025
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    References listed on IDEAS

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    Cited by:

    1. Kareem, Olayinka Idowu, 2016. "Food safety regulations and fish trade: Evidence from European Union-Africa trade relations," Journal of Commodity Markets, Elsevier, vol. 2(1), pages 18-25.

    More about this item

    Keywords

    Nontariff barrier; sanitary and phytosanitary standards (SPS); gravity model; multilateral resistance; bridge to cross; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; International Development; International Relations/Trade; Research Methods/ Statistical Methods; F13; F14; Q17;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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