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The Impact of Services Trade Restrictiveness on Food Trade

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  • Amara ZONGO

Abstract

This paper examines the effects of restrictions in logistics, transportation, distribution, finance and other business sectors on food trade. We use a gravity model with panel data from 2014 to 2018 across 36 OECD countries, OECD indices of individual country restrictions and regulatory differences by country pair to capture the level of restrictions in these sectors. The paper concludes that importing and exporting country restrictions in logistics, finance and other business sectors have significant negative effects on food exports between OECD countries. Restrictions in the distribution sector have significant positive effects on exports. The sectors most affected are food, live animals and perishable products (milk, eggs and meat). Regulatory disparity in the logistics sector is a barrier to trade, but disparity in the transport sector has positive and significant effects on food exports. This negative impact disappears when the exporting country is closed to service providers. The deregulation or harmonization of these measures would be highly beneficial to food trade.

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  • Amara ZONGO, 2021. "The Impact of Services Trade Restrictiveness on Food Trade," Bordeaux Economics Working Papers 2021-01, Bordeaux School of Economics (BSE).
  • Handle: RePEc:grt:bdxewp:2021-01
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    More about this item

    Keywords

    Food trade; Service sector; Restrictions in services; Gravity model;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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