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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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Paper provided by Institut d'Economie et Econométrie, Université de Genève in its series Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva with number 12092.

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Length: 35 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:gen:geneem:12092
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  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Xiong, Bo & Beghin, John C., 2010. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers 31595, Iowa State University, Department of Economics.
  6. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2008. "The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 336-350.
  7. 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.
  8. Kleibergen, F.R. & Paap, R., 2003. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Econometric Institute Research Papers EI 2003-01, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  9. 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, World Trade Organization (WTO), Economic Research and Statistics Division.
  10. 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.
  11. 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.
  12. Anne-Célia Disdier & Stéphan Marette, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Nontariff Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 713-726.
  13. 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.
  14. 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.
  15. 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.
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