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Impact of Food Safety Standards on Processed Food Exports from Developing Countries

Author

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  • Jongwanich, Juthathip

    (Asian Development Bank)

Abstract

This paper examines the impact of food safety standards on processed food exports in developing countries. An intercountry cross-sectional econometric analysis of processed food exports in developing countries was undertaken. The Sanitary and Phytosanitary Standard (SPS) is incorporated into the model to capture the impact of food safety standards. The empirical model shows that food safety standards imposed by developed countries tend to have a negative implication for processed food exports from developing countries. Since SPS is less transparent than tariffs or quotas, practically, there is ample room for developed countries to tweak the standards to be stronger than necessary to achieve optimal levels of social protection, and to twist the related testing and certification procedures to make their own competing products competitive with imports. However, because of the potential benefits that could emerge from imposing food safety standards such as a reduction of transaction costs and trade friction, developing countries should view SPS not just as a trade barrier but an opportunity to upgrade quality standard and market sophistication. Multilateral efforts are needed to mobilize additional financial and technical assistance to help redress constraints in developing countries in meeting the required food safety standards imposed by developed countries.

Suggested Citation

  • Jongwanich, Juthathip, 2009. "Impact of Food Safety Standards on Processed Food Exports from Developing Countries," ADB Economics Working Paper Series 154, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0154
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    File URL: http://www.adb.org/Documents/Working-Papers/2009/Economics-WP154.pdf
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    References listed on IDEAS

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    1. Prema-Chandra Athukorala & Sisira Jayasuriya, 2003. "Food Safety Issues, Trade and WTO Rules: A Developing Country Perspective," The World Economy, Wiley Blackwell, vol. 26(9), pages 1395-1416, September.
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    Citations

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    Cited by:

    1. Mohammed, Rezgar & Zheng, Yuqing, 2017. "International Diffusion Of Food Safety Standards: The Role Of Domestic Certifiers And International Trade," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(02), pages 296-322, May.
    2. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Jin Hyeung, Kim & Sung Ho, Park & Young Chan, Choe, 2016. "A study on consumer characteristics of processed rice and meat products on food-related lifestyles using beta regression model," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235871, Agricultural and Applied Economics Association.
    4. Briones, Roehlano & Felipe, Jesus, 2013. "Agriculture and Structural Transformation in Developing Asia: Review and Outlook," ADB Economics Working Paper Series 363, Asian Development Bank.
    5. Engler, Alejandra & Nahuelhual, Laura & Cofré, Gabriela & Barrena, Jose, 2012. "How far from harmonization are sanitary, phytosanitary and quality-related standards? An exporter’s perception approach," Food Policy, Elsevier, vol. 37(2), pages 162-170.
    6. Lei, Lei & Zhou, Li, 2017. "Avian influenza, nontariff measures, and the poultry exports in the global value chain," IDE Discussion Papers 640, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Briones, Roehlano M., 2013. "The Structure of Agricultural Trade Industry in Developing Countries," Discussion Papers DP 2013-15, Philippine Institute for Development Studies.
    8. Sonntag, Winnie & Theuvsen, Ludwig & Kersting, Valerie & Otter, Verena, 2016. "Have Industrialized Countries Shut the Door and Left the Key Inside? Rethinking the Role of Private Standards in the International Fruit Trade," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(2).
    9. Aka, Joël, 2017. "Market approval of phytosanitary active substances in Europe: An empirical duration analysis," Food Policy, Elsevier, vol. 68(C), pages 143-153.
    10. Melo, Oscar & Engler, Alejandra & Nahuelhual, Laura & Cofre, Gabriela & Barrena, Jose, 2012. "Does Sanitary and Phytosanitary regulation stringency affect developing countries exports? Evidence from Chilean fruit exports," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125298, International Association of Agricultural Economists.
    11. Jin, Shaosheng & Guo, Haiyue & Delgado, Michael & Wang, H., 2015. "Benefit or Damage? The Productivity Effects of FDI in Chinese Food Industry," 2015 Conference, August 9-14, 2015, Milan, Italy 211813, International Association of Agricultural Economists.
    12. repec:gam:jsusta:v:10:y:2018:i:6:p:1712-:d:148737 is not listed on IDEAS
    13. Kumar, Anjani & Thapa, Ganesh & Joshi, Pramod Kumar & Roy, Devesh, 2016. "Adoption of food safety measures among Nepalese milk producers: Do smallholders benefit?:," IFPRI discussion papers 1556, International Food Policy Research Institute (IFPRI).
    14. Juthathip Jongwanich & Nedelyn Magtibay-Ramos, 2009. "Determinants of structural change in food exports from developing countries," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 23(2), pages 94-115, November.
    15. Donatella Baiardi & Carluccio Bianchi & Eleonora Lorenzini, 2014. "Food competition in world markets: Some evidence from a panel data analysis of top exporting countries," DEM Working Papers Series 083, University of Pavia, Department of Economics and Management.
    16. Minor, Travis & Parrett, Matt, 2017. "The economic impact of the Food and Drug Administration’s Final Juice HACCP Rule," Food Policy, Elsevier, vol. 68(C), pages 206-213.
    17. Zheng, Yuqing & Muth, Mary & Brophy, Jenna, 2013. "The Impact of Food Safety Third-Party Certifications on China’s Food Exports to the United States," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149926, Agricultural and Applied Economics Association.
    18. Aarathi, L.R. & Kumar, Shiv & Negi, Digvijay Singh & Singh, Dharam Raj, 2012. "Prevailing Standards and Dimensions Governing Sanitary and Phyto-Sanitary Compliance in Indian Black Pepper Supply Chain," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(1).
    19. Olayinka Idowu Kareem, 2014. "The European Union Sanitary and Phytosanitary Measures and Africa’s Exports," RSCAS Working Papers 2014/98, European University Institute.

    More about this item

    Keywords

    Food Safety Standards; Processed food trade; developing countries;

    JEL classification:

    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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