The Impact of Regulatory Heterogeneity on Agri‐Food Trade

21 Pages Posted: 9 Aug 2012

See all articles by Niven Winchester

Niven Winchester

University of Otago - School of Business

Marie‐Luise Rau

Wageningen UR - International Trade and Markets

Christian Goetz

affiliation not provided to SSRN

Bruno Larue

Université Laval

Tsunehiro Otsuki

Osaka University - Osaka School of International Public Policy (OSIPP)

Karl Shutes

affiliation not provided to SSRN

Christine Wieck

affiliation not provided to SSRN

Heloisa Lee Burnquist

University of Sao Paulo (USP) - Department of Economics, Administration and Sociology

Pinto de Souza

University of São Paulo (USP)

Rosane Nunes de Faria

Universidade Federal de São Carlos (UFScar)

Date Written: August 2012

Abstract

We estimate the impact of regulatory heterogeneity on agri‐food trade using a gravity analysis that relies on detailed data on non‐tariff measures (NTMs) collected by the NTM‐Impact project. The data cover a broad range of import requirements for agricultural and food products for the EU and nine of its major trade partners. We find that trade is significantly reduced when importing countries have stricter maximum residue limits (MRLs) for plant products than exporting countries. For most other measures, due to their qualitative nature, we were unable to infer whether the importer has stricter standards relative to the exporter, and we do not find a robust relationship between these measures and trade. Our findings suggest that, at least for some import standards, harmonising regulations will increase trade. We also conclude that tariff reductions remain an effective means to increase trade even when NTMs abound.

Suggested Citation

Winchester, Niven and Rau, Marie-Luise and Goetz, Christian and Larue, Bruno and Otsuki, Tsunehiro and Shutes, Karl and Wieck, Christine and Burnquist, Heloisa Lee and de Souza, Pinto and Nunes de Faria, Rosane, The Impact of Regulatory Heterogeneity on Agri‐Food Trade (August 2012). The World Economy, Vol. 35, Issue 8, pp. 973-993, 2012, Available at SSRN: https://ssrn.com/abstract=2127001 or http://dx.doi.org/10.1111/j.1467-9701.2012.01457.x

Niven Winchester (Contact Author)

University of Otago - School of Business ( email )

Dunedin
New Zealand
+64 (03) 479 8648 (Phone)
+64 (03) 479 8174 (Fax)

Marie-Luise Rau

Wageningen UR - International Trade and Markets ( email )

Netherlands
31-70-3358197 (Phone)
31-70-3358196 (Fax)

Christian Goetz

affiliation not provided to SSRN ( email )

Bruno Larue

Université Laval ( email )

2425 rue de l'Agriculture
local 4417
Quebec, Quebec G1V 0A6
Canada
418 656 2131 x5098 (Phone)
418 656 7821 (Fax)

Tsunehiro Otsuki

Osaka University - Osaka School of International Public Policy (OSIPP) ( email )

1-31, Machikaneyama
Toyonaka, Osaka 560-0043
Japan

Karl Shutes

affiliation not provided to SSRN

Christine Wieck

affiliation not provided to SSRN ( email )

Heloisa Lee Burnquist

University of Sao Paulo (USP) - Department of Economics, Administration and Sociology ( email )

Av. Padua Dias, 11
Piracicaba, SP 13418-900
Brazil

Pinto De Souza

University of São Paulo (USP)

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

Rosane Nunes de Faria

Universidade Federal de São Carlos (UFScar)

Rodovia Washington Luis, 310, Sao Carlos - SP
Brazil

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
770
PlumX Metrics