Revisiting the impact of per‐unit duties on agricultural export prices

Abstract

We replicate the findings of Emlinger and Guimbardr (ERAE, 2021) on the heterogeneous effects of per-unit tariffs on trade patterns for developed and developing countries. Analyzing import and export data from 2001 to 2013, they confirm the Alchian-Allen conjecture that per-unit trade costs induce higher export unit values.However, the effects are more pronounced for developed country exporters. Understanding the effects of per-unit trade costs vis-a-vis ad valorem tariffs is important to level the playing field of trade negotiations that involve pricing and non-pricing policies. We extend the original study with data for 191 exporting (190 importing) countries, and 670 HS6 digit products,

Replications in agricultural economics

“…In contrast, adding data from more recent years has only minor effects on the results. Fiankor and Santeramo (2023) conclude that the Alchian-Allen effect needs further research for certain dimensions. Legrand's (2023) replication study "'The empirical relevance of the competitive storage model' by Cafiero et al (2011): Replication, robustness, and extension" focuses on the storage model with rational expectations given that the model's empirical validity remains challenged.…”

“…The article "Revisiting the trade impact of per-unit duties on developing countries: further evidence from alternate measures of product quality" by Fiankor and Santeramo (2023) replicates Emlinger and Guimbard (2021). The authors were unable to repeat the data preparation but were able to replicate most of the findings of the original study when using the data obtained from the original authors.…”

The Import Effects of the Entry Price System

“…Our findings support the bilateral negotiations of agricultural trade preferences. Many more procedures and barriers that hinder trade among countries persist in agri-food than in manufacturing sectors (see, e.g., Santeramo and Lamonaca, 2019;Beghin and Schweizer, 2021;Fiankor and Santeramo, 2023). Therefore, gaining a better understanding of the overall consequences of a nontariff barrier-such as the EPS-for agricultural trade among countries, which has been the main aim of this research, is of great policy relevance.…”