Maximum residue limits and agrifood exports of China: choosing the best estimation technique

Abstract

Th e main aim of the article is to show the response of the Maximum Residue Limits adopted by importing countries on exports of the selected food commodities from China. Th e study estimates the gravity model using the Ordinary Least Squares, Poisson and the Negative Binomial Regression estimators. According to the results, the Maximum Residue Limits has a trade enhancing eff ect on exports of the selected food commodities from China. Th is trade enhancing impact may be due to the current government policies to put a cut on the food safety issues, to ensure safe food for all and adopting a protectionist policy in terms of the Maximum Residues Limits for the selected commodities.

Re-Estimating the Effects of Stricter Standards on Trade: Endogeneity Matters

“…Specically, stricter standards are found to have a positive eect on trade in our results, irrespective of the source of stringency. While the positive trade eect of stricter standards has been documented in this literature (Blind and Jungmittag, 2005;Xiong and Beghin, 2013;Ishaq et al, 2016), these authors did not account for the endogeneity in the standards-trade relationship.…”

“…In contrast, the existing impact assessment of standards literature either fails to account for the endogeneity in the standards-trade relationship (Jongwanich, 2009;Engler et al, 2012;Drogué and DeMaria, 2012;Winchester et al, 2012;Xiong and Beghin, 2013;Ishaq et al, 2016) or does so using instrumental variables on cross-sectional survey data (Hansen and Trifkovi¢, 2014;Melo et al, 2014). Xiong & Beghin (2014) regard potential biases from endogeneity in their analyses to be limited while Ferro et al (2015) do not include all appropriate xed eects in their estimations.…”

“…One recent exception to this isIshaq et al (2016), who use theLi & Beghin (2014) stringency indices to examine the eect of stricter (than Codex) importing country standards on Chinese exports over 2012-2013 and nd this eect to be positive.5Re-estimating the effects of stricter standards on trade: endogeneity matters…”

Re‐estimating the effect of heterogeneous standards on trade: Endogeneity matters

“…Standards can also convey positive information on product quality, again enhancing demand. Existing literature has documented the positive effects of standards on trade (Henson & Jaffee, 2008; Ishaq, Ping, Haq, Li, & Tong, 2016; Jaffee & Henson, 2004; Nimenya, Ndimira, & de Frahan, 2012; Xiong & Beghin, 2013).…”

“…In contrast, the existing impact assessment of standards literature either fails to account for endogeneity in the standards–trade relationship (Drogue & DeMaria, 2012; Engler, Nahuelhual, Cofre, & Barrena, 2012; Ishaq et al., 2016; Jongwanich, 2009; Winchester et al., 2012; Xiong & Beghin, 2013) or does so using instrumental variables on cross‐sectional survey data (Hansen & Trifković, 2014; Melo, Engler, Nahuehual, Cofre, & Barrena, 2014). Xiong and Beghin (2014) regard potential biases from endogeneity in their analyses to be limited while Ferro, Otsuki, and Wilson (2015) do not include all appropriate fixed effects in their estimations.…”