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The Impact of Quarantine Policies on the Quality of Imports

Author

Listed:
  • Daniel Bunting

    (New South Wales Treasury)

  • Kevin J. Fox

    () (School of Economics, Australian School of Business, the University of New South Wales)

Abstract

In a contribution to the sparse literature on the impacts on consumers of quarantine restrictions, an innovative approach to analysing the effects of these policies on the prices and quality of imported products is proposed. Specifically, various index num- ber decompositions at different aggregation levels are considered for extracting quality changes from changes in the value of an imported good. Consistent with theory, an empirical application to mango imports for Australia reveals an increase in the quality of the imported bundle after the introduction of a new quarantine restriction. We be- lieve this to the first empirical evidence of the quality impact of biosecurity restrictions on imports.

Suggested Citation

  • Daniel Bunting & Kevin J. Fox, 2014. "The Impact of Quarantine Policies on the Quality of Imports," Discussion Papers 2014-01, School of Economics, The University of New South Wales.
  • Handle: RePEc:swe:wpaper:2014-01
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2014-01.pdf
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    References listed on IDEAS

    as
    1. Hallerbach, Winfried G., 2005. "An alternative decomposition of the Fisher index," Economics Letters, Elsevier, vol. 86(2), pages 147-152, February.
    2. Robert C. Feenstra, 1988. "Quality Change Under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 131-146.
    3. Balk, Bert M., 2004. "Decompositions of Fisher indexes," Economics Letters, Elsevier, vol. 82(1), pages 107-113, January.
    4. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    5. Dumagan, Jesus C., 2002. "Comparing the superlative Tornqvist and Fisher ideal indexes," Economics Letters, Elsevier, vol. 76(2), pages 251-258, July.
    6. Brenton, Paul & Pinna, Anna Maria, 2002. "Trends in Disaggregated Import and Export Prices in Europe: Implications for the Trade and Wages Debate," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(1), pages 1-21, February.
    7. Bertonazzi, Eric P & Maloney, Michael T & McCormick, Robert E, 1993. "Some Evidence on the Alchian and Allen Theorem: The Third Law of Demand?," Economic Inquiry, Western Economic Association International, vol. 31(3), pages 383-393, July.
    8. Borcherding, Thomas E & Silberberg, Eugene, 1978. "Shipping the Good Apples Out: The Alchian and Allen Theorem Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 86(1), pages 131-138, February.
    9. Falvey, Rodney E, 1979. "The Composition of Trade within Import-restricted Product Categories," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1105-1114, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Quarantine; trade barriers; index numbers; quality change;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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