The ongoing debate on whether agri-food (public) regulatory standards are barriers or catalysts to trade is particularly pertinent for developing countries who are often standardtakers. Current evidence on the trade effects of regulatory standards is ambiguous. In this paper, we give a contribution focusing on the firm heterogeneity trade effects of (different) types of agri-food standards, considering firm-level exports from Peru. Particular emphasis is given to standards with different degree of restrictiveness, such as specific trade concerns (STCs) raised on the most stringent NTMs, and to product-quality upgrading. Results show that only the most restrictive NTMs significantly limit agri-food exports for Peruvian firms, affecting the probability to tr trade. Importantly, we uncovered relevant heterogonous effects of NTMs on firms of different size, showing that only the most stringent standards result in product quality upgrading.
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This paper investigates the relationship between EU agricultural subsidies and agricultural labor productivity growth by estimating a conditional convergence growth model. We use more representative subsidy indicators and a wider coverage (panel data from 213 EU regions over the period 2004-2014) than have been used before.We find that, on average, EU's Common Agricultural Policy (CAP) subsidies increase agricultural labor productivity growth, but this aggregate effect hides important heterogeneity of effects of different types of subsidies. The positive effect on productivity comes from decoupled subsidies, that is, Pillar I decoupled payments and some Pillar II payments. Coupled Pillar I subsidies have the opposite effect: they slow down productivity growth.
Using a new detailed dataset on country‐product information on European Union (EU) Geographical Indications (GIs), we study the impact of this food quality policy on trade margins over the 1996–2014 period. We consider the effect of GIs on both intra‐ and extra‐EU trade margins (extensive and intensive), as well as on export (and import) unit values. Our main results show that GIs affect trade flows differently depending on whether GIs are produced by the exporter or importer country. The presence of GIs in the exporter country systematically exerts a positive trade effect on both the extensive and intensive trade margin. When registered only in the importer country, GIs seem to act weakly as a trade‐reducing measure, at least at the intensive trade margin. In addition, GIs positively affect export prices, consistent with the idea that GI products are perceived by consumers as higher quality goods. Importantly, extra‐EU trade margins react similarly to those on intra‐EU trade. These results have clear and interesting implications concerning the EU strategy of promoting the protection of GIs worldwide.
This paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.
Migration and climate change are two of the most important challenges the world currently faces. They are connected as climate change may stimulate or hinder migration. One of the sectors strongly affected by climate change is agriculture, which is the source of income for most of the world's poor. Climate change may affect agricultural productivity and hence migration because of its impact on average temperatures and rainfall and because it increases the frequency and intensity of weather shocks. In this paper we use data on 108 countries from 1960 to 2010 to analyze the relationship between weather variations, changes in agricultural productivity and international migration. We find that negative shocks to agricultural productivity caused by climate fluctuations significantly increase emigration from developing countries, an especially strong impact in poor countries but less so in middle income countries. These results are robust to the definitions of the poor country sample, and to several checks and alternative explanations suggested by the literature. Importantly, our results point to a causal interpretation of the agricultural channel to explain the climate changemigration nexus.
This paper investigates the relationship between agricultural subsidies and the outflow of labor from agriculture. We use new and more representative subsidy indicators than have been used before and panel data from 215 EU regions over the period 2004-2014. The data allow to correct better for sample selection bias than previous empirical studies. We find that, on average, CAP subsidies reduce the outflow of labor from agriculture, but the effect is entirely due to decoupled payments and rural development payments. Coupled payments have no impact on reducing labor outflow from agriculture, i.e. on preserving farm employment.
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