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Does Sanitary and Phytosanitary regulation stringency affect developing countries exports? Evidence from Chilean fruit exports

  • Melo, Oscar
  • Engler, Alejandra
  • Nahuelhual, Laura
  • Cofre, Gabriela
  • Barrena, Jose

Increasing awareness of food safety issues has brought a boost in sanitary and phytosanitary regulations and standards. Although is likely that these regulations have increased health and welfare in the countries that impose them, they may also have an important effect in exporting countries, affecting especially small producers in developing countries. Other papers have found that individual quantitative measures of regulatory stringency have an impact on trade, but none has looked into broader SPS regulation stringency indicators. Through a survey that asked Chilean fresh fruit exporters to evaluate the stringency for 16 countries and four fresh fruits, we create and index that incorporates several aspects of SPS regulation. Our estimations suggest that, on average, quality standards and packaging and labeling issues are considered the most stringent. We also estimate a gravity model and find that SPS regulatory stringency, measured by this broad index, has negative and significant effect on traded volume

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File URL: http://purl.umn.edu/125298
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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 125298.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:125298
Contact details of provider: Web page: http://www.iaae-agecon.org/
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  1. Disdier, Anne-Celia & Fontagne, Lionel & Mimouni, Mondher, 2008. "AJAE Appendix: The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
  2. Jongwanich, Juthathip, 2009. "The impact of food safety standards on processed food exports from developing countries," Food Policy, Elsevier, vol. 34(5), pages 447-457, October.
  3. Claudio Bravo-Ortega & Manuel Agosin Trumper, 2007. "The Emergence Of New Successful Export Activities In Latin America: The Case Of Chile," Working Papers wp236, University of Chile, Department of Economics.
  4. Henk Kox & Arjan Lejour, 2005. "Regulatory heterogeneity as obstacle for international services trade," CPB Discussion Paper 49, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Charlotte Emlinger & Florence Jacquet & Emmanuelle Chevassus-Lozza, 2008. "Tariffs and other trade costs: assessing obstacles to Mediterranean countries'access to EU-15 fruit and vegetable markets," Working Papers 26831, Institut National de la Recherche Agronomique, France.
  6. Jongwanich, Juthathip, 2009. "Impact of Food Safety Standards on Processed Food Exports from Developing Countries," ADB Economics Working Paper Series 154, Asian Development Bank.
  7. Simon J. Evenett & Wolfgang Keller, 1998. "On Theories Explaining the Success of the Gravity Equation," NBER Working Papers 6529, National Bureau of Economic Research, Inc.
  8. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  9. 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.
  10. Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
  11. Babool, Md. Ashfaqul Islam & Reed, Michael R., 2007. "Food Safety Standards and Export Competitiveness in the Food and Processed Food Industries in Asia-Pacific Countries," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9399, European Association of Agricultural Economists.
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