IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277113.html
   My bibliography  Save this paper

Exports and Governance: the Role of Private Voluntary Certification

Author

Listed:
  • Fiankor, D.-D.
  • Martinez-Zarzoso, I.
  • Brummer, B.

Abstract

Empirical evidence on the trade-governance nexus tends to show that institutional differences restrict bilateral trade flows. In this paper, we introduce governance gap as a measure of the degree to which governance and institutions differ between countries. Using a sample of EU imports from 193 exporting countries, we examine the potential of voluntary food certification as surrogate institutions to overcome the governance gap at the country level. Our results show that while widening governance gaps lead to lower bilateral exports, the interaction of certification and the governance gap is positively associated with bilateral exports, hence partially offsetting the direct trade-inhibiting effects Acknowledgement : This research was financially supported by the German Research Foundation (DFG) through the GlobalFood Program (grant number RTG 1666). We thank the GlobalGAP Head Office, Cologne for providing us data on certification. Dela-Dem Doe Fiankor gracefully acknowledges financial support from the Katholischer Akademischer Ausl ?ander-Dienst (KAAD), Germany

Suggested Citation

  • Fiankor, D.-D. & Martinez-Zarzoso, I. & Brummer, B., 2018. "Exports and Governance: the Role of Private Voluntary Certification," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277113, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277113
    DOI: 10.22004/ag.econ.277113
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277113/files/982.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    2. Kareem, Fatima Olanike & Martínez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2018. "Protecting health or protecting imports? Evidence from EU non-tariff measures," International Review of Economics & Finance, Elsevier, vol. 53(C), pages 185-202.
    3. Micheline Goedhuys & Pierre Mohnen, 2017. "Management Standard Certification and Firm productivity: Micro-evidence from Africa," Journal of African Development, African Finance and Economic Association (AFEA), vol. 19(1), pages 61-83.
    4. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    5. Henri L. F. De Groot & Gert‐Jan Linders & Piet Rietveld & Uma Subramanian, 2004. "The Institutional Determinants of Bilateral Trade Patterns," Kyklos, Wiley Blackwell, vol. 57(1), pages 103-123, February.
    6. Álvarez, Inmaculada C. & Barbero, Javier & Rodríguez-Pose, Andrés & Zofío, José L., 2018. "Does Institutional Quality Matter for Trade? Institutional Conditions in a Sectoral Trade Framework," World Development, Elsevier, vol. 103(C), pages 72-87.
    7. Felbermayr, Gabriel J. & Toubal, Farid, 2010. "Cultural proximity and trade," European Economic Review, Elsevier, vol. 54(2), pages 279-293, February.
    8. Xun Cao & Aseem Prakash, 2011. "Growing exports by signaling product quality: Trade competition and the cross‐national diffusion of ISO 9000 quality standards," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 111-135, December.
    9. Santos Silva, J.M.C. & Tenreyro, Silvana, 2011. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," Economics Letters, Elsevier, vol. 112(2), pages 220-222, August.
    10. Stefan Ouma, 2010. "Global Standards, Local Realities: Private Agrifood Governance and the Restructuring of the Kenyan Horticulture Industry," Economic Geography, Clark University, vol. 86(2), pages 197-222, April.
    11. Baldwin, Richard, 2000. "Regulatory Protectionism, Developing Nations and a Two-Tier World Trade System," CEPR Discussion Papers 2574, C.E.P.R. Discussion Papers.
    12. Korschun, Daniel & Dimitrova, Boryana & Yotov, Yoto, 2015. "When and How Country Reputation Stimulates Export Volume," School of Economics Working Paper Series 2015-4, LeBow College of Business, Drexel University.
    13. 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.
    14. Majid Abdi & Preet S Aulakh, 2012. "Do country-level institutional frameworks and interfirm governance arrangements substitute or complement in international business relationships?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(5), pages 477-497, June.
    15. van Bergeijk,Peter A. G. & Brakman,Steven (ed.), 2010. "The Gravity Model in International Trade," Cambridge Books, Cambridge University Press, number 9780521196154, December.
    16. Mohammed, Rezgar & Zheng, Yuqing, 2017. "International Diffusion Of Food Safety Standards: The Role Of Domestic Certifiers And International Trade," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(2), pages 296-322, May.
    17. Baldwin, Richard, 2007. "Trade Effects of the Euro: a Comparison of Estimators," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 780-818.
    18. Marilyne Huchet‐Bourdon & Angela Cheptea, 2011. "Informal barriers and agricultural trade: does monetary integration matter?," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 519-530, July.
    19. Charles P. Oman & Christiane Arndt, 2006. "Governance Indicators for Development," OECD Development Centre Policy Insights 33, OECD Publishing.
    20. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
    21. Goedhuys, Micheline & Sleuwaegen, Leo, 2013. "The Impact of International Standards Certification on the Performance of Firms in Less Developed Countries," World Development, Elsevier, vol. 47(C), pages 87-101.
    22. Yu, Miaojie, 2010. "Trade, democracy, and the gravity equation," Journal of Development Economics, Elsevier, vol. 91(2), pages 289-300, March.
    23. Goedhuys, Micheline & Sleuwaegen, Leo, 2016. "International standards certification, institutional voids and exports from developing country firms," International Business Review, Elsevier, vol. 25(6), pages 1344-1355.
    24. Lio, Monchi & Liu, Meng-Chun, 2008. "Governance and agricultural productivity: A cross-national analysis," Food Policy, Elsevier, vol. 33(6), pages 504-512, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    International Relations/Trade;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:277113. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/iaaeeea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.