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GMO Regulations, International Trade and the Imperialism of Standards

Author

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  • Mauro Vigani
  • Valentina Raimondi
  • Alessandro Olper

Abstract

This paper deals with the quantification of GMO regulations on bilateral trade flows. A composite index of the 慶omplexity?of such regulations for sixty countries as well as an 憃bjective?score for six GMO regulatory sub-dimensions has been developed. Using a gravity model, we show how bilateral 憇imilarity?in GMO regulations, affect trade flows for the composite index and its components. Results show that bilateral distance in GMO regulations negatively affect trade flows, especially as an effect of labeling policies, approval process and traceability systems. Interesting, the trade reduction effect induced by GMO standards increase by a factor of four when GMO regulations is treated as endogenous to trade flows. This pattern is consistent with an international environment where large importing countries 慸ictate?the rules of the game to developing countries.

Suggested Citation

  • Mauro Vigani & Valentina Raimondi & Alessandro Olper, 2010. "GMO Regulations, International Trade and the Imperialism of Standards," LICOS Discussion Papers 25510, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:25510
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    Cited by:

    1. Drogué, Sophie & DeMaria, Federica, 2012. "Pesticide residues and trade, the apple of discord?," Food Policy, Elsevier, vol. 37(6), pages 641-649.
    2. Yuan Li & John C. Beghin, 2017. "Protectionism indices for non-tariff measures: An application to maximum residue levels," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 10, pages 167-178 World Scientific Publishing Co. Pte. Ltd..
    3. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    4. Drogué, S. & DeMaria, F., 2012. "« Comparing apples with pears. How differences in pesticide residues regulations impact trade? »," Working Papers MOISA 201201, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro - Montpellier, France.
    5. Boza, Sofía, 2013. "Assessing the impact of sanitary, phytosanitary and technical requirements on food and agricultural trade: what does current research tell us?," Papers 926, World Trade Institute.
    6. Jean-Christophe Bureau & Thorsten Rogall, 2017. "EU Policies and Global Food Security," LICOS Discussion Papers 39217, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    7. 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," Discussion Papers 230588, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. José Manuel Álvarez Zárate (Editor), 2016. "¿ Hacia Donde Va América Latina Respecto Al Derecho Económico Internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 860.
    9. Foletti, Liliana & Shingal, Anirudh, 2014. "Stricter regulation boosts exports: the case of Maximum Residue Levels in pesticides," MPRA Paper 59895, University Library of Munich, Germany.
    10. Vigani, Mauro & Olper, Alessandro, 2013. "GMO standards, endogenous policy and the market for information," Food Policy, Elsevier, vol. 43(C), pages 32-43.

    More about this item

    Keywords

    GMO standards; Harmonization; Trade Flow; Gravity Model; Endogeneity;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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