The Effect of Product Standards on Agricultural Exports
We introduce a standards restrictiveness index to analyze the impact that food safety standards have on international exports of agricultural products. Our new measure of standards restrictiveness is created using maximum residue levels of pesticides for 61 importing countries and 66 different products. The index accounts for both the number of pesticides regulated for each product and the allowable level for those pesticides by each importer. The findings suggest that more restrictive standards are associated, on average, with a lower probability of observing trade. However, after controlling for sample selection and the proportion of exporting firms in a gravity model, the analysis finds that the effect of standards on trade intensity in most cases is indistinguishable from zero. This is consistent with the assumption that meeting stringent standards increases primarily the fixed cost to export to a destination. Once a firm adjusts its production to comply with the standards of a foreign market, those standards do not impact the intensity of exports to that market. Finally, our results suggest that exports from developing countries are particularly constrained by stricter standards.
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Format: | Journal Article biblioteca |
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Elsevier
2015-01
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Subjects: | Standards, Agriculture, International trade, Emerging markets, |
Online Access: | http://hdl.handle.net/10986/20720 |
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dig-okr-10986207202021-04-23T14:03:59Z The Effect of Product Standards on Agricultural Exports Ferro, Esteban Otsuki, Tsunehiro Wilson, John S. Standards Agriculture International trade Emerging markets We introduce a standards restrictiveness index to analyze the impact that food safety standards have on international exports of agricultural products. Our new measure of standards restrictiveness is created using maximum residue levels of pesticides for 61 importing countries and 66 different products. The index accounts for both the number of pesticides regulated for each product and the allowable level for those pesticides by each importer. The findings suggest that more restrictive standards are associated, on average, with a lower probability of observing trade. However, after controlling for sample selection and the proportion of exporting firms in a gravity model, the analysis finds that the effect of standards on trade intensity in most cases is indistinguishable from zero. This is consistent with the assumption that meeting stringent standards increases primarily the fixed cost to export to a destination. Once a firm adjusts its production to comply with the standards of a foreign market, those standards do not impact the intensity of exports to that market. Finally, our results suggest that exports from developing countries are particularly constrained by stricter standards. 2014-12-16T15:29:03Z 2014-12-16T15:29:03Z 2015-01 Journal Article Food Policy 0306-9192 http://hdl.handle.net/10986/20720 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article |
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Standards Agriculture International trade Emerging markets Standards Agriculture International trade Emerging markets Ferro, Esteban Otsuki, Tsunehiro Wilson, John S. The Effect of Product Standards on Agricultural Exports |
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We introduce a standards restrictiveness index to analyze the impact that food safety standards have on international exports of agricultural products. Our new measure of standards restrictiveness is created using maximum residue levels of pesticides for 61 importing countries and 66 different products. The index accounts for both the number of pesticides regulated for each product and the allowable level for those pesticides by each importer. The findings suggest that more restrictive standards are associated, on average, with a lower probability of observing trade. However, after controlling for sample selection and the proportion of exporting firms in a gravity model, the analysis finds that the effect of standards on trade intensity in most cases is indistinguishable from zero. This is consistent with the assumption that meeting stringent standards increases primarily the fixed cost to export to a destination. Once a firm adjusts its production to comply with the standards of a foreign market, those standards do not impact the intensity of exports to that market. Finally, our results suggest that exports from developing countries are particularly constrained by stricter standards. |
format |
Journal Article |
topic_facet |
Standards Agriculture International trade Emerging markets |
author |
Ferro, Esteban Otsuki, Tsunehiro Wilson, John S. |
author_facet |
Ferro, Esteban Otsuki, Tsunehiro Wilson, John S. |
author_sort |
Ferro, Esteban |
title |
The Effect of Product Standards on Agricultural Exports |
title_short |
The Effect of Product Standards on Agricultural Exports |
title_full |
The Effect of Product Standards on Agricultural Exports |
title_fullStr |
The Effect of Product Standards on Agricultural Exports |
title_full_unstemmed |
The Effect of Product Standards on Agricultural Exports |
title_sort |
effect of product standards on agricultural exports |
publisher |
Elsevier |
publishDate |
2015-01 |
url |
http://hdl.handle.net/10986/20720 |
work_keys_str_mv |
AT ferroesteban theeffectofproductstandardsonagriculturalexports AT otsukitsunehiro theeffectofproductstandardsonagriculturalexports AT wilsonjohns theeffectofproductstandardsonagriculturalexports AT ferroesteban effectofproductstandardsonagriculturalexports AT otsukitsunehiro effectofproductstandardsonagriculturalexports AT wilsonjohns effectofproductstandardsonagriculturalexports |
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1756573860804689920 |