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Standard, Reputation and Trade: Evidence from U.S horticultural imports refusals

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  • Marie-Agnes Jouanjean

Abstract

This paper investigates the impact of food safety standards promulgated by governments or imposed by byers from the private sector on the capacity of developing countries to access developed countries' markets for high value agricultural and food products. I offer an analysis that disentangles productivity-sorting from quality-sorting in fresh fruits and vegetables exports. My theoretical model and empirical analysis confirms the importance of taking into consideration importers' preference for quality as well as exporters' capacity to produce quality products when analyzing average export unit prices of fresh fruits and vegetables. Thanks to a new database on U.S import refusals, my empirical analysis shows that a shock to reputation seems to have a downgrading effect, reducing the capacity of countries to export quality products.

Suggested Citation

  • Marie-Agnes Jouanjean, 2011. "Standard, Reputation and Trade: Evidence from U.S horticultural imports refusals," LICOS Discussion Papers 28111, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:28111
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp281.pdf
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    References listed on IDEAS

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    1. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
    2. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    3. Jason H. Grant & Dayton M. Lambert, 2008. "Do Regional Trade Agreements Increase Members' Agricultural Trade?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 765-782.
    4. 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.
    5. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 441-487.
    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    7. Kathy Baylis & Andrea Martens & Lia Nogueira, 2009. "What Drives Import Refusals?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1477-1483.
    8. Buzby, Jean C. & Unnevehr, Laurian J. & Roberts, Donna, 2008. "Food Safety and Imports: An Analysis of FDA Food-Related Import Refusal Reports," Economic Information Bulletin 58626, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Giorgio Barba Navaretti & Giulia Felice & Emanuele Forlani & Paolo Garella, 2018. "Non-tariff measures and competitiveness," Development Working Papers 438, Centro Studi Luca d'Agliano, University of Milano.
    2. Daniele Curzi & Lucia Pacca & Alessandro Olper, 2013. "Estimating Food Quality from Trade Data: An Empirical Assessment," LICOS Discussion Papers 33913, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Lorena Tudela-Marco & Jose Maria Garcia-Alvarez-Coque & Luisa Martí-Selva, 2017. "Do EU Member States Apply Food Standards Uniformly? A Look at Fruit and Vegetable Safety Notifications," Journal of Common Market Studies, Wiley Blackwell, vol. 55(2), pages 387-405, March.
    4. John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2017. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 5, pages 81-104, World Scientific Publishing Co. Pte. Ltd..
    5. Curzi, Daniele & Raimondi, Valentina & Olper, Alessandro, 2013. "Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152386, International Agricultural Trade Research Consortium.
    6. repec:hal:gmonwp:hal-00961727 is not listed on IDEAS
    7. John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2017. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 5, pages 81-104, World Scientific Publishing Co. Pte. Ltd..
    8. Marie-Agnès Jouanjean & Jean-Christophe Maur & Ben Shepherd, 2011. "Reputation Matters: Spillover Effects in the Enforcement of US SPS Measures," LICOS Discussion Papers 30211, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    9. John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2017. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 5, pages 81-104, World Scientific Publishing Co. Pte. Ltd..
    10. Kumar, C Nalin, 2016. "Sensitivity of India’s agri-food exports to the European union: An institutional perspective," Working Papers 366, Institute for Social and Economic Change, Bangalore.
    11. Jouanjean, Marie-Agnès & Maur, Jean-Christophe & Shepherd, Ben, 2015. "Reputation matters: Spillover effects for developing countries in the enforcement of US food safety measures," Food Policy, Elsevier, vol. 55(C), pages 81-91.
    12. Tanrattanaphong, Borworn & Hu, Baiding & Gan, Christopher, 2020. "The impacts of value chain upgrading on the export of processed food," Food Policy, Elsevier, vol. 93(C).

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    More about this item

    Keywords

    SPS; agricultural trade; quality sorting; reputation;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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