Description: The Effect of Product Standards on Agricultural Exports from Developing Countries

The Effect of Product Standards on Agricultural Exports from Developing Countries

The authors create a standards restrictiveness index using newly available data on maximum residue levels of pesticides for 61 importing countries. The paper analyzes the impact that food safety standards have on international trade of agricultural...

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Bibliographic Details
Main Authors:	Ferro, Esteban, Wilson, John S., Otsuki, Tsunehiro
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCORDS AGRICULTURAL COMMODITIES AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTS AGRICULTURAL TRADE AGRICULTURE APPLES AVOCADOS BANANAS BEEF BILATERAL TRADE BILATERAL TRADE DATA CA CARROTS CASHEW NUTS CEREALS COMPETITIVENESS CONFORMITY ASSESSMENTS CONSUMERS CURRENCY CURRENCY UNION DATES DEVELOPMENT POLICY DRIED FRUITS ECONOMIC POLICY ECONOMIC RESEARCH EGG ELASTICITY ELASTICITY OF SUBSTITUTION EUROPEAN UNION EXCHANGE RATES EXPORT COSTS EXPORT MARKETS EXPORTERS EXPORTING COUNTRIES EXPORTS EXTERNALITIES FIXED COST FIXED COSTS FOOD HYGIENE FOOD IMPORTS FOOD POLICY FOOD PRODUCTS FOOD SAFETY FOODS FOREIGN FIRMS FOREIGN MARKETS FOREIGN TRADE GDP GDP PER CAPITA GLOBAL INTEGRATION GLOBAL TRADE GRAPEFRUIT GRAVITY EQUATION GRAVITY MODEL GRAVITY VARIABLES GROUNDNUT GUAVAS IMPORT MARKETS IMPORT POLICIES IMPORT TARIFF IMPORTING COUNTRIES IMPORTING COUNTRY INCOME INCOME GROUPS INCREASING RETURNS INNOVATION INTERNATIONAL BANK INTERNATIONAL MARKETS INTERNATIONAL TRADE LDCS LEGAL REQUIREMENTS LEMONS LESS DEVELOPED COUNTRIES MACROECONOMICS MAIZE MANGOES MARGINAL EFFECTS MARKET SIZE MARKET STRUCTURE MILLS MONOPOLISTIC COMPETITION MULTILATERAL TRADE NUTS OATS ORANGES PEACHES PESTICIDE PESTICIDES POLICY MAKERS POLICY RESEARCH POTATOES PRODUCT DIFFERENTIATION PRODUCTION PROCESS PROTECTIONISM PUBLIC POLICY PURCHASING POWER REGIONAL TRADE REGIONAL TRADE AGREEMENTS RICE SAFETY SAFETY REGULATIONS SAFETY STANDARDS SOYA BEANS SPICES SPINACH SWEET POTATOES TANGERINES TARIFF DATA TARIFF RATE TECHNICAL BARRIERS TECHNICAL ECONOMICS TOMATOES TRADE BARRIERS TRADE BLOC TRADE BLOCS TRADE COSTS TRADE DATA TRADE DIVERSION TRADE DIVERSION EFFECT TRADE EFFECT TRADE FLOWS TRADE INTENSITY TRADE NEGOTIATIONS TRADE PATTERNS TRADE VALUES TRADE VOLUMES URUGUAY ROUND VALUE OF EXPORTS VALUE OF TRADE VARIABLE COSTS VEGETABLES WHEAT WORLD TRADE WTO emerging markets standards
Online Access:	http://documents.worldbank.org/curated/en/2013/06/17940296/effect-product-standards-agricultural-exports-developing-countries http://hdl.handle.net/10986/15878

Description
Summary:	The authors create a standards restrictiveness index using newly available data on maximum residue levels of pesticides for 61 importing countries. The paper analyzes the impact that food safety standards have on international trade of agricultural products. 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 is indistinguishable from zero. This is consistent with the assumption that meeting stringent standards increases primarily the fixed costs of exporting. Once firms enter the market, however, standards do not impact the level of exports. The analysis also finds a greater marginal effect of BRICS (Brazil, Russia, India, China, and South Africa) standards on the probability of trade, relative to other countries' standards, keeping in mind however that on average BRICS standards are less restrictive. The analysis also suggests that exporters in low-income countries are more adversely affected by stricter standards.

The Effect of Product Standards on Agricultural Exports from Developing Countries

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