The Effect of Product Standards on Agricultural Exports from Developing Countries

Ferro, Esteban; Wilson, John S.; Otsuki, Tsunehiro

The Effect of Product Standards on Agricultural Exports from Developing Countries

Autores

Ferro, Esteban

Wilson, John S.

Otsuki, Tsunehiro

Editor

World Bank, Washington, DC

Descripción

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.

Palabras clave

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