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Trade, Development, and the Political Economy of Public Standards

  • Johan F.M. Swinnen
  • Thijs Vandemoortele

This paper presents a political economy model of public standards in an open economy model. We use the model to derive the political optimum and to analyze different factors that have an influence on this political equilibrium. The paper discusses how the level of development influences the political equilibrium. We also analyze the relation between trade and the political equilibrium and compare this political outcome with the social optimum to identify under which cases `under-standardization?or `over-standardization?results, and which standards can be labeled as (producer)protectionist measures.

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File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp236.pdf
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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 23609.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:23609
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  6. Jill J. McCluskey & Johan F.M. Swinnen, 2004. "Political Economy of the Media and Consumer Perceptions of Biotechnology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1230-1237.
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  12. Barrett, Christopher B. & Yang, Yi-Nung, 1999. "Rational Incompatibility With International Product Standards," Working Papers 14597, International Agricultural Trade Research Consortium.
  13. Marette, Stephan & Beghin, John C., 2010. "Are Standards Always Protectionist?," Staff General Research Papers 12826, Iowa State University, Department of Economics.
  14. Curtis, Kynda R. & Wahl, Thomas I. & McCluskey, Jill J., 2003. "Consumer Acceptance of Genetically Modified Food Products in the Developing World," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57858, Australian Agricultural and Resource Economics Society.
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  21. Bernheim, B Douglas & Whinston, Michael D, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 1-31, February.
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  23. Boom, Anette, 1995. "Asymmetric International Minimum Quality Standards and Vertical Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 101-19, March.
  24. Gulati Sumeet & Roy Devesh, 2007. "How Standards Drive Taxes: The Political Economy of Tailpipe Pollution," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-23, January.
  25. John S. Wilson & Victor O. Abiola, 2003. "Standards and Global Trade : A Voice for Africa," World Bank Publications, The World Bank, number 15131, October.
  26. Salop, Steven C & Scheffman, David T, 1983. "Raising Rivals' Costs," American Economic Review, American Economic Association, vol. 73(2), pages 267-71, May.
  27. Murray Fulton & Konstantinos Giannakas, 2004. "Inserting GM Products into the Food Chain: The Market and Welfare Effects of Different Labeling and Regulatory Regimes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 42-60.
  28. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
  29. Suwa Eisenmann, Akiko & Verdier, Thierry, 2002. "Reciprocity and the Political Economy of Harmonization and Mutual Recognition of Regulatory Measures," CEPR Discussion Papers 3147, C.E.P.R. Discussion Papers.
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