IDEAS home Printed from https://ideas.repec.org/p/cpm/docweb/1004.html
   My bibliography  Save this paper

The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures

Author

Listed:
  • Disdier, Anne-Célia
  • Marette, Stéphan

Abstract

This article explores the link between gravity and welfare frameworks for measuring the impact of non-tariff measures. First, an analytical approach suggests how to combine a gravity equation with a partial equilibrium model to determine the welfare impact of nontariff measures. Second, an empirical application focuses on the effects of a standard capping antibiotic residues in crustaceans in the United States, the European Union, Canada and Japan. While the econometric estimation of the gravity equation reports a negative impact on imports, welfare evaluations show that, in most cases, a stricter standard leads to an increase in both domestic and international welfare.

Suggested Citation

  • Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
  • Handle: RePEc:cpm:docweb:1004
    as

    Download full text from publisher

    File URL: http://www.cepremap.fr/depot/docweb/docweb1004.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chengyan Yue & John C. Beghin, 2017. "Tariff Equivalent And Forgone Trade Effects Of Prohibitive Technical Barriers To Trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 8, pages 139-150, World Scientific Publishing Co. Pte. Ltd..
    2. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation," Journal of International Economics, Elsevier, vol. 77(1), pages 77-85, February.
    3. Chengyan Yue & John Beghin & Helen H. Jensen, 2017. "Tariff Equivalent Of Technical Barriers To Trade With Imperfect Substitution And Trade Costs," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 9, pages 151-164, World Scientific Publishing Co. Pte. Ltd..
    4. Wilson, John S. & Otsuki, Tsunehiro, 2004. "To spray or not to spray: pesticides, banana exports, and food safety," Food Policy, Elsevier, vol. 29(2), pages 131-146, April.
    5. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    6. World Bank, 2004. "Saving Fish and Fisheries : Towards Sustainable and Equitable Governance of the Global Fishing Sector," World Bank Publications - Reports 14391, The World Bank Group.
    7. Sampath Jayasinghe & John C. Beghin & Giancarlo Moschini, 2017. "Determinants Of World Demand For U.S. Corn Seeds: The Role Of Trade Costs," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 17, pages 309-320, World Scientific Publishing Co. Pte. Ltd..
    8. Pendell, Dustin L. & Leatherman, John & Schroeder, Ted C. & Alward, Gregory S., 2007. "The Economic Impacts of a Foot-And-Mouth Disease Outbreak: A Regional Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(s1), pages 19-33, October.
    9. Jayson L. Lusk & F. Bailey Norwood & J. Ross Pruitt, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1015-1033.
    10. Yue, Chengyan & Beghin, John C. & Jensen, Helen H., 2006. "AJAE Appendix: Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-9, November.
    11. Yue, Chengyan & Beghin, John C., 2009. "“AJAE Appendix: The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-5, January.
    12. 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.
    13. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    14. Everett B. Peterson & David Orden, 2008. "Avocado Pests and Avocado Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 321-335.
    15. Philip L. Paarlberg & John G. Lee, 1998. "Import Restrictions in the Presence of a Health Risk: An Illustration Using FMD," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 175-183.
    16. John M. Crespi & St)phan Marette, 2001. "How Should Food Safety Certification be Financed?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 852-861.
    17. Buzby, Jean C. & Unnevehr, Laurian J. & Roberts, Donna, 2008. "Food Safety and Imports: An Analysis of FDA Food-Related Import Refusal Reports," Economic Information Bulletin 58626, United States Department of Agriculture, Economic Research Service.
    18. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    2. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    3. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    4. Ferrier, Peyton, 2014. "The Effects of Phytosanitary Regulations on U.S. Imports of Fresh Fruits and Vegetables," Economic Research Report 176199, United States Department of Agriculture, Economic Research Service.
    5. 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.
    6. Sophie Drogue & Jean-Philippe Gervais, 2010. "Guidelines and methodology to analyze the different case studies," Working Papers hal-02818030, HAL.
    7. Santeramo, Fabio G., 2017. "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 263493, European Association of Agricultural Economists.
    8. 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.
    9. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    10. Bo Xiong & John Beghin, 2017. "Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 6, pages 105-108, World Scientific Publishing Co. Pte. Ltd..
    11. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 4, pages 63-77, World Scientific Publishing Co. Pte. Ltd..
    12. Haq, Zahoor Ul & Meilke, Karl D. & Cranfield, John A.L., 2011. "The Gravity Model and the Problem of Zero's in Agrifood Trade," Working Papers 116851, Canadian Agricultural Trade Policy Research Network.
    13. Kareem, Fatima Olanike & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2016. "Fitting the Gravity Model when Zero Trade Flows are Frequent: a Comparison of Estimation Techniques using Africa's Trade Data," GlobalFood Discussion Papers 230588, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    14. Sampath Jayasinghe & John C. Beghin & Giancarlo Moschini, 2017. "Determinants Of World Demand For U.S. Corn Seeds: The Role Of Trade Costs," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 17, pages 309-320, World Scientific Publishing Co. Pte. Ltd..
    15. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    16. Taghouti, Ibtissem & Martinez-Gomez, Victor & Coque, José María Garcia Alvarez, 2015. "Exploring Eu Food Safety Notifications On Agro-Food Imports: Are Mediterranean Partner Countries Discriminated?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-15, April.
    17. John Beghin & Mark Melatos, 2017. "The Trade and Welfare Impacts of Australian Quarantine Policies: The Case of Pigmeat," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 15, pages 271-286, World Scientific Publishing Co. Pte. Ltd..
    18. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    19. Jeffrey H. Bergstrand & Scott L. Baier, 2010. "An Evaluation of Swiss Free Trade Agreements Using Matching Econometrics," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 65(3), pages 239-250, September.
    20. James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, September.

    More about this item

    Keywords

    Gravity Equation; Non-Tariff Measures; Seafood; Welfare;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpm:docweb:1004. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ceprefr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mathieu Perona (email available below). General contact details of provider: https://edirc.repec.org/data/ceprefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.