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

  • Pramila Crivelli
  • Jasmin Gröschl

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

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-Ifo_Working_Papers/wp-ifo-2012/IfoWorkingPaper-136.pdf
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Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 136.

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Date of creation: 2012
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Handle: RePEc:ces:ifowps:_136
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  1. Xiong, Bo & Beghin, John C., 2011. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers 34936, Iowa State University, Department of Economics.
  2. Disdier, Anne-Celia & van Tongeren, Frank W., 2009. "Non-Tariff Measures in Agri-Food Trade: What Does the Data Tell Us? Evidence from a Cluster Analysis on OECD Imports," 2009 Conference, August 16-22, 2009, Beijing, China 51759, International Association of Agricultural Economists.
  3. Fontagné, Lionel & Orefice, Gianluca & Piermartini, Roberta & Rocha, Nadia, 2013. "Product standards and margins of trade: Firm level evidence," WTO Staff Working Papers ERSD-2013-04, .
  4. Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service.
  5. Frank Kleibergen & Richard Paap, 2003. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Tinbergen Institute Discussion Papers 03-003/4, Tinbergen Institute.
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  7. 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.
  8. Drogue, Sophie & DeMaria, Federica, 2011. "Pesticides Residues and Trade: the Apple of Discord?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114445, European Association of Agricultural Economists.
  9. Jayasinghe, Sampath J.D.Y. & Beghin, John C. & Moschini, GianCarlo, 2010. "Determinants of World Demand for U.S. Corn Seeds: The Role of Trade Costs," Staff General Research Papers 31493, Iowa State University, Department of Economics.
  10. Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
  11. 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.
  12. Bruno Henry de Frahan & Mark Vancauteren, 2006. "Harmonisation of food regulations and trade in the Single Market: evidence from disaggregated data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 337-360, September.
  13. Simon W. Schlueter & Christine Wieck & Thomas Heckelei, 2009. "Regulatory Policies in Meat Trade: Is There Evidence for Least Trade-distorting Sanitary Regulations?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1484-1490.
  14. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
  15. Gebrehiwet, Yemane & Ngqangweni, Simphiwe & Kirsten, Johann F., 2007. "Quantifying the Trade Effect of Sanitary and Phytosanitary Regulations of OECD Countries on South African Food Exports," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), March.
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