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Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector

Author

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  • Curzi, Daniele
  • Raimondi, Valentina
  • Olper, Alessandro

Abstract

This paper analyzes the extent to which the reduction of import tariffs ‒ as a measure of import competition ‒ affects the quality upgrading of the food products exported to the EU. This relationship is studied within a ‘distance to the frontier’ model (Aghion et al., 2005) who predicts a non-monotonic relation between competition and innovation. Quality is inferred from trade data using the Khandelwal (2010) method. The results show strong support for the existence of an non-monotonic relationship between competition and quality upgrading, with varieties close to the world frontier more likely to upgrade quality in response to an increase in import competition.
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Suggested Citation

  • Curzi, Daniele & Raimondi, Valentina & Olper, Alessandro, 2013. "Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152387, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatr13:152387
    DOI: 10.22004/ag.econ.152387
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    Cited by:

    1. Eum, Jihyun, 2016. "Food Safety Standards and Quality Upgrading through Import Competition," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235518, Agricultural and Applied Economics Association.
    2. Catherine Ragasa & Suzanne Thornsbury & Satish Joshi, 2017. "Dynamics of EU food safety certification: a survival analysis of firm decisions," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-25, December.
    3. Duvaleix, Sabine & Emlinger, Charlotte & Gaigné, Carl & Latouche, Karine, 2021. "Geographical indications and trade: Firm-level evidence from the French cheese industry," Food Policy, Elsevier, vol. 102(C).
    4. Sheldon, Ian M., 2013. "Firms, Quality Upgrading and Trade," 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182476, International Agricultural Trade Research Consortium.
    5. Tseng, Eric & Sheldon, Ian, 2015. "Quality Upgrading, Trade, and Market Structure in Food Processing Industries," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229237, International Agricultural Trade Research Consortium.
    6. Olper, Alessandro & Curzi, Daniele & Pacca, Lucia, 2014. "Do food standards affect the quality of EU imports?," Economics Letters, Elsevier, vol. 122(2), pages 233-237.
    7. Tseng, Eric & Sheldon, Ian, 2015. "Food Processing Firms, Input Quality Upgrading and Trade," 2015 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2015, Boston, Massachusetts 189696, Agricultural and Applied Economics Association.
    8. Aristide Bonsdaouêndé Valea & Lota D. Tamini & Damien Rousselière, 2025. "Agri‐food trade liberalization, export prices, and quality upgrading: Evidence from the meat and chocolate sectors in OECD countries," Agribusiness, John Wiley & Sons, Ltd., vol. 41(3), pages 765-791, July.
    9. Chen, You-hua & Chen, Liu-man & Mishra, Ashok K., 2021. "Information, Capacity Constraints and Quality on Firms Competition," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329427, Asian Society of Agricultural Economists (ASAE).
    10. Olper, Alessandro & Curzi, Daniele & Raimondi, Valentina, 2015. "Import Penetration, Intermediate Inputs and Firms’ Productivity in the EU Food Industry," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207844, Italian Association of Agricultural and Applied Economics (AIEAA).
    11. Ferto, Imre & Bojnec, Stefan, 2015. "Quality upgrading in the European-Union agri-food exports," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204225, Agricultural Economics Society.
    12. Curzi, Daniele & Pacca, Lucia, 2015. "Price, quality and trade costs in the food sector," Food Policy, Elsevier, vol. 55(C), pages 147-158.

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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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