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Certification of Origin as a Non-Tariff Barrier

Author

Listed:
  • Claire Chambolle

    (CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique)

  • Eric Giraud-Héraud

    (CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper put forward the opinion that the certification of origin constitutes another type ofnon-tariff barrier. Indeed, certification of origin often combines both a quantity restriction anda sort of quality cost subsidy. We consider the canonical model of strategic trade policy,whereby two firms are located respectively in the home country and in a foreign country andare competing on the domestic market. In this framework, we show how certification canallow the domestic firm to position itself as a high quality producer. If, however, the certifiedfirm offers the low quality good, then consumers' surplus may be improved.

Suggested Citation

  • Claire Chambolle & Eric Giraud-Héraud, 2004. "Certification of Origin as a Non-Tariff Barrier," Working Papers hal-00242917, HAL.
    • Handle: RePEc:hal:wpaper:hal-00242917
    Note: View the original document on HAL open archive server: https://hal.science/hal-00242917
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    References listed on IDEAS

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    1. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
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    3. Herguera, Inigo & Kujal, Praveen & Petrakis, Emmanuel, 2000. "Quantity restrictions and endogenous quality choice," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1259-1277, December.
    4. Krishna, Kala, 1990. "Protection and the Product Line: Monopoly and Product Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(1), pages 87-102, February.
    5. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    6. Analysis, A Welfare & Das, Satya P. & Donnenfeld, Shabtai, 1987. "Trade policy and its impact on quality of imports," Journal of International Economics, Elsevier, vol. 23(1-2), pages 77-95, August.
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    Cited by:

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    2. Marion Desquilbet & Sylvette Monier-Dilhan, 2015. "Are geographical indications a worthy quality label? A framework with endogenous quality choice," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(1), pages 129-150.
    3. Filippis, Fabrizio De & Giua, Mara & Salvatici, Luca & Vaquero-Pineiro, Cristina, 2021. "The International Competitiveness of Geographical Indications: Hype or Hope?," 2021 Conference, August 17-31, 2021, Virtual 315147, International Association of Agricultural Economists.
    4. Patricia Crifo & Vanina D. Forget, 2015. "The Economics Of Corporate Social Responsibility: A Firm-Level Perspective Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 112-130, February.
    5. Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    6. Anders, Sven M. & Caswell, Julie A., 2009. "The Benefits and Costs of Proliferation of Geographical Labeling for Developing Countries," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1), pages 1-17.
    7. Monier-Dilhan Sylvette & Poméon Thomas & Böhm Michael & Brečić Ruzica & Tomić Maksan Marina & Csillag Peter & Donati Michele & Veneziani Mario & Ferrer-Pérez Hugo & Gil José M. & Gauvrit Lisa & Hoàng , 2021. "Do Food Quality Schemes and Net Price Premiums Go Together?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 19(2), pages 79-94, December.
    8. Raimondi, Valentina & Falco, Chiara & Curzi, Daniele & Olper, Alessandro, 2016. "Estimating the trade effects of the EU food quality policy," 149th Seminar, October 27-28, 2016, Rennes, France 244795, European Association of Agricultural Economists.
    9. 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.
    10. De Filippis, Fabrizio & Giua, Mara & Salvatici, Luca & Vaquero-Piñeiro, Cristina, 2022. "The international trade impacts of Geographical Indications: Hype or hope?," Food Policy, Elsevier, vol. 112(C).

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