A Review of Methods for Quantifying the Trade Effects of Standards in the Agri-Food Sector
This paper evaluates the different approaches to quantifying the trade impact of standards in the agri-food sector. The approaches discussed fall into two broad categories: ex post empirical estimation and ex ante simulation. Recent developments on the impact of standards on market segmentation are also examined. Since both the level and design of a standard are important determinants of its impact, the most suitable choice of quantification strategy will depends on the characteristics of the standard itself. For example, ex ante simulation techniques are more appropriate when measuring the impact of complex standards regimes. On the other hand, ex post empirical estimation is preferable when the level of the standard is more important than its design.
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