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Tariffs and non-tariff frictions in the world wine trade

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  • Dal Bianco, Andrea
  • Boatto, Vasco
  • Caracciolo, Francesco
  • Santeramo, Fabio Gaetano

Abstract

This article empirically investigates the impact of trade barriers on the world wine trade, focusing on trade costs impeding exports, including transport, tariffs, technical barriers and sanitary and phytosanitarystandards. A gravity model is estimated using data from the main importing and exporting countries for the years 1997 to 2010. The Poison Pseudo-Maximum Likelihood (PPML) estimator accounts for heteroskedasticity and the presence of zero trade flows. Our results identify which regulations can adversely affect trade, providing useful information to policy-makers involved in negotiations on trade frictions. While sanitary and phytosanitary measures do not seem to obstruct exports, technical barriers have a varying impact on trade. A decreasing trend for tariffs has largely been compensated by more stringent technical barriers. The overall result is that frictions in the world wine trade have not changed during the past fifteen years.

Suggested Citation

  • Dal Bianco, Andrea & Boatto, Vasco & Caracciolo, Francesco & Santeramo, Fabio Gaetano, 2014. "Tariffs and non-tariff frictions in the world wine trade," MPRA Paper 61813, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:61813
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    References listed on IDEAS

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    Keywords

    tariffs; technical barriers to trade; sanitary and phytosanitary regulations; gravity model; PPML;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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