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GMO Regulations, International Trade and the Imperialism of Standards

Listed author(s):
  • Vigani, Mauro
  • Raimondi, Valentina
  • Olper, Alessandro

This paper deals with the quantification of GMO regulations on bilateral trade flows. A composite index of the ‘complexity’ of such regulations for sixty countries based on ‘objective’ scores assigned to six GMO regulatory sub-dimensions has been developed. Using a gravity model, we show how bilateral ‘similarity’ in GMO regulations, affect trade flows for the composite index and its components. Results show that bilateral distance in GMO regulations negatively affect trade flows, especially as an effect of labeling policies, approval process and traceability systems. Interesting, the trade enhancement effect induced by GMO standards similarity increase by a factor of four when GMO regulations is treated as endogenous to trade flows. This pattern is consistent with an international environment where large importing countries ‘dictate’ the rules of the game to developing countries.

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File URL: http://purl.umn.edu/188116
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Paper provided by International Consortium on Applied Bioeconomy Research (ICABR) in its series 14th ICABR Conference, June 16-18, 2010, Ravello, Italy with number 188116.

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Date of creation: 2010
Handle: RePEc:ags:itic10:188116
Contact details of provider: Web page: http://www.icabr.org/

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