Private Food Standards and Firm-Level Trade Effects: A Dynamic Analysis of the Peruvian Asparagus Export Sector
Private standards are increasingly governing international food trade, but little is known about the implications for developing countries. The objective of the study is to provide evidence in the ongoing debate on standards as barrier or catalyst for developing countries’ export. We use the Peruvian fresh asparagus export sector as a case study and provide empirical panel data evidence on the effects of certification to private food standards on export volumes of firms. Our dataset on the transactions of 567 export firms from 1993 to 2011 allows us to take export dynamics and time trends into account, as well as to keep country and sector specific effects constant. In our empirical strategy, we first use simple OLS and ignore firm-specific unobservable effects and dynamic export patterns. We then account for export persistence, as well as company fixed effects and finally, use System-GMM estimators to address potential reversed causality issues. These approaches represent substantial methodological improvements compared with previous studies on the trade effects of private standards. The empirical innovation is crucial for accurate impact estimation, as results indicate that certification to standards has a positive effect on the export volumes of companies, but that the significant effect dwindles as soon as unobserved firm heterogeneity and export persistency are properly controlled for. Additional studies with large data availabilities are needed to further disentangle the effect and confirm the case study results.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Celestijnenlaan 200 E - box 2411, 3001 Leuven (Heverlee)|
Phone: +32-16-32 29 80
Fax: +32-16-32 78 00
Web page: http://www.agr.kuleuven.ac.be/aee/clo/clohomee.htm
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henson, Spencer & Masakure, Oliver & Cranfield, John, 2011. "Do Fresh Produce Exporters in Sub-Saharan Africa Benefit from GlobalGAP Certification?," World Development, Elsevier, vol. 39(3), pages 375-386, March.
- Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
- Bernard, Andrew B. & Bradford Jensen, J., 1999.
"Exceptional exporter performance: cause, effect, or both?,"
Journal of International Economics,
Elsevier, vol. 47(1), pages 1-25, February.
- Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
- Bernard, A., 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," Working papers 97-21, Massachusetts Institute of Technology (MIT), Department of Economics.
- Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-564, September.
- Sven M. Anders & Julie A. Caswell, 2007.
"Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 91(2), pages 310-321.
- Sven Anders & Julie Caswell, 2007. "Standards-as-Barriers versus Standards-as-Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," Working Papers 2007-7, University of Massachusetts Amherst, Department of Resource Economics.
- repec:ner:leuven:urn:hdl:123456789/335950 is not listed on IDEAS
- 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.
- Unnevehr, Laurian J., 2000.
"Food safety issues and fresh food product exports from LDCs,"
Blackwell, vol. 23(3), pages 231-240, September.
- Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
- Arellano, Manuel & Bover, Olympia, 1995.
"Another look at the instrumental variable estimation of error-components models,"
Journal of Econometrics,
Elsevier, vol. 68(1), pages 29-51, July.
- M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
- Liesbeth Colen & Miet Maertens & Johan Swinnen, 2012. "Private Standards, Trade and Poverty: GlobalGAP and Horticultural Employment in Senegal," The World Economy, Wiley Blackwell, vol. 35(8), pages 1073-1088, August.
- Bo Xiong & John Beghin, 2017.
"Does European aflatoxin regulation hurt groundnut exporters from Africa?,"
World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 16, pages 287-307
World Scientific Publishing Co. Pte. Ltd..
- Bo Xiong & John Beghin, 2012. "Does European aflatoxin regulation hurt groundnut exporters from Africa?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(4), pages 589-609, September.
- Xiong, Bo & Beghin, John C., 2010. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers Archive 31595, Iowa State University, Department of Economics.
- Xiong, Bo & Beghin, John C., 2011. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers Archive 34936, Iowa State University, Department of Economics.
- Otsuki, Tsunehiro & S. Wilson, John, 2003. "Food Safety and Trade: Winners and Losers in a Non-Harmonized World," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 266-287.
- Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, May.
- Maertens, Miet & Swinnen, Johan F.M., 2009.
"Trade, Standards, and Poverty: Evidence from Senegal,"
Elsevier, vol. 37(1), pages 161-178, January.
- Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Maertens, Miet & Swinnen, Johan F.M., 2007. "Trade, Standards and Poverty. Evidence from Senegal," 106th Seminar, October 25-27, 2007, Montpellier, France 7924, European Association of Agricultural Economists.
- John Wilson & Tsunehiro Otsuki & Baishali Majumdsar, 2003.
"Balancing food safety and risk: do drug residue limits affect international trade in beef?,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 12(4), pages 377-402.
- Wilson, John S. & Otsuki, Tsunehiro & Majumdar, Baishali, 2003. "Balancing Food Safety And Risk: Do Drug Residue Limits Affect International Trade In Beef?," 2003 Annual meeting, July 27-30, Montreal, Canada 21971, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Chen, Maggie Xiaoyang & Otsuki, Tsunehiro & Wilson, John S., 2006. "Do standards matter for export success ?," Policy Research Working Paper Series 3809, The World Bank.
- William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, June.
- Shimizu, Tatsuya, 2006. "Expansion of Asparagus Production and Exports in Peru," IDE Discussion Papers 73, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Chamberlain, Gary, 1982. "Multivariate regression models for panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 5-46, January.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, "undated". "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Maskus, Keith E. & Otsuki, Tsunehiro & Wilson, John S., 2005. "The cost of compliance with product standards for firms in developing countries: an econometric study," Policy Research Working Paper Series 3590, The World Bank.
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- R Blundell & Steven Bond, "undated". "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Richard Blundell & Stephen Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
- Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996.
"Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.