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The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows

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  • Pramila Crivelli
  • Jasmin Katrin Gröschl

Abstract

In an attempt to disentangle the impact of sanitary and phytosanitary (SPS) measures on trade patterns, we estimate a Heckman selection model on the HS4 disaggregated level of trade. We find that aggregated SPS measures constitute barriers to agricultural and food trade consistently to all exporters. But conditional on market entry, trade flows are positively affected by SPS measures. Additionally, we find that SPS measures related to conformity assessment hamper market entry and trade flows, while SPS measures related to product characteristics pose an entry barrier but increase bilateral trade flows conditional on meeting the standard

Suggested Citation

  • Pramila Crivelli & Jasmin Katrin Gröschl, 2012. "The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows," ifo Working Paper Series 136, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_136
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    Cited by:

    1. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 595-617, September.
    2. Kareem, Olayinka Idowu, 2016. "Food safety regulations and fish trade: Evidence from European Union-Africa trade relations," Journal of Commodity Markets, Elsevier, vol. 2(1), pages 18-25.
    3. Gianluca Orefice, 2017. "Non-Tariff Measures, Specific Trade Concerns and Tariff Reduction," The World Economy, Wiley Blackwell, vol. 40(9), pages 1807-1835, September.
    4. Santeramo, Fabio G., 2017. "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017: Globalization Adrift, December 3-5, 2017, Washington, D.C. 266809, International Agricultural Trade Research Consortium.
    5. Luisa Kinzius & Alexander Sandkamp & Erdal Yalcin, 2019. "Trade protection and the role of non-tariff barriers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(4), pages 603-643, November.
    6. Kjersti Nes & K Aleks Schaefer, 2020. "Retaliatory Use of Public Standards in Trade," NBER Working Papers 27255, National Bureau of Economic Research, Inc.
    7. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "On the impact of non-tariff measures on trade performances of the African agri-food sector," Agrekon, Taylor & Francis Journals, vol. 58(4), pages 389-406, October.
    8. Giorgio Barba Navaretti & Lionel Fontagné & Gianluca Orefice & Giovanni Pica & Anna Cecilia Rosso, 2019. "TBTs, Firm Organization and Labour Structure," Working Papers 2019-14, CEPII research center.
    9. Ferraz, Lucas Pedreira do Couto & Ribeiro, Marcel & Monasterio, Pedro, 2017. "On the Effects of Non-Tariff Measures on Brazilian Exports," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 71(3), September.
    10. Mike Webb & John Gibson & Anna Strutt, 2017. "The Importance of Biosecurity: How Diseases Can Affect International Beef Trade," Working Papers in Economics 17/13, University of Waikato.
    11. Tao, Hongjun & Luckstead, Jeff & Zhao, Liang & Xie, Chaoping, 2016. "Estimating Restrictiveness of SPS Measures for China's Dairy Imports," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-24, August.
    12. Dorothee Crayen & Christa Hainz & Christiane Ströh de Martinez, 2010. "Remittances, Banking Status and the Usage of Insurance Schemes," CESifo Working Paper Series 3117, CESifo.
    13. Grundke, Robert & Moser, Christoph, 2019. "Hidden protectionism? Evidence from non-tariff barriers to trade in the United States," Journal of International Economics, Elsevier, vol. 117(C), pages 143-157.
    14. Webb, Mike & Gibson, John & Strutt, Anna, 2018. "The impact of diseases on international beef trade: Market switching and persistent effects," Food Policy, Elsevier, vol. 75(C), pages 93-108.
    15. Santeramo, Fabio Gaetano & Lamonaca, Emilia, 2019. "The role of non-tariff measures in the agri-food sector: positive or negative instruments for trade?," MPRA Paper 96763, University Library of Munich, Germany.
    16. Santeramo, Fabio, 2020. "Trade Effects of SPS Measures in Regional Trade Agreements," Commissioned Papers 304053, International Agricultural Trade Research Consortium.
    17. Dorothee Crayen & Christa Hainz & Christiane St�h de Mart�nez, 2013. "Remittances, Banking Status and the Usage of Insurance Schemes," Journal of Development Studies, Taylor & Francis Journals, vol. 49(6), pages 861-875, June.
    18. Jungran Cho & Emma Kyoungseo Hong & Jeongho Yoo & Inkyo Cheong, 2020. "The Impact of Global Protectionism on Port Logistics Demand," Sustainability, MDPI, Open Access Journal, vol. 12(4), pages 1-17, February.
    19. Tamminen, Saara & Niemi, Janne & Nilsson Hakkala, Katariina, 2017. "The expected economic impacts of the EU-Canada Comprehensive Economic and Trade Agreement in Finland," Research Reports 187, VATT Institute for Economic Research.
    20. Olayinka Idowu Kareem, 2016. "The High-Value Commodity Export Effects of Standards in Africa," The International Trade Journal, Taylor & Francis Journals, vol. 30(3), pages 237-259, May.
    21. Ferraz, Lucas Pedreira do Couto & Ribeiro, Marcel Bertini, 2018. "New Tools for the CGE Analysis of PTAs in the era of Non-Tariff Barriers and Global Value Chains: The case of Mercosur and China," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 72(3), August.
    22. Jacob Wood & Jie Wu & Yilin Li & Jungsuk Kim, 2019. "The Impact of TBT and SPS Measures on Japanese and Korean Exports to China," Sustainability, MDPI, Open Access Journal, vol. 11(21), pages 1-23, November.
    23. Shuyao Yang, 2020. "Technical Barriers to Trade and Firms' Export Decisions," CESifo Working Paper Series 8693, CESifo.
    24. Grant, Jason & Arita, Shawn, 2017. "Sanitary and Phyto-Sanitary Measures: Assessment, Measurement, and Impact," Commissioned Papers 259417, International Agricultural Trade Research Consortium.
    25. Olayinka Idowu Kareem, 2014. "The European Union Sanitary and Phytosanitary Measures and Africa’s Exports," RSCAS Working Papers 2014/98, European University Institute.

    More about this item

    Keywords

    Agriculture; international trade; sanitary and phytosanitary measures; conformity; assessment; Heckman selection model;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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