The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows

Crivelli, Pramila; Groeschl, Jasmin

doi:10.1111/twec.12283

Cited by 96 publications

(96 citation statements)

References 36 publications

(53 reference statements)

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“…We find that NTMs imposing a conformity requirement, that is, testing, certification or inspection, significantly reduce the number of countries exporting to a market. This is consistent with previous research by Crivelli and Gröschl () which finds that sanitary and phytosanitary (SPS) compliance measures that have been raised as a concern at the WTO reduce the number of countries exporting to a market. However, our current research is much broader, showing that compliance measures have an effect for both SPS and technical barriers to trade (TBT)‐related measures, and the effect is not just for those measures that are sufficiently problematic to be raised at the WTO.…”

Section: Introductionsupporting

confidence: 92%

“…Gravity modelling is widely applied, but two applications are of particular relevance to our work . Crivelli and Gröschl () use a Heckman selection model and data on specific concerns about SPS measures raised at the WTO. They find that such SPS measures reduce the probability of exporting to these markets but, conditional on trade occurring, values exported are higher.…”

Section: Previous Studiesmentioning

confidence: 99%

“…Beyond the six‐digit level, codes are not harmonised between countries. Therefore, most cross‐country work is done at the six‐digit, or more aggregated level, for instance, Crivelli and Gröschl () undertook their analysis at the four‐digit level. As a robustness check to determine the effect of using more detailed data, we compare our results using six‐digit data for New Zealand to results obtained using eight‐digit data.…”

Section: Robustness Checksmentioning

confidence: 99%

See 2 more Smart Citations

Market access implications of non‐tariff measures: Estimates for four developed country markets

2018

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We quantify the effects of non‐tariff measures on the extensive margin of trade, examining the number of countries exporting particular products to Canada, the European Union, New Zealand and the United States. We find that non‐tariff measures that impose a conformity requirement, that is, testing, certification or inspection, will reduce the number of countries exporting to these markets. Conformity requirements imposed for sanitary or phytosanitary reasons have the largest effect in Canada, reducing the number of exporting countries by 47% compared to the situation where no compliance requirement is imposed. Conformity requirements imposed for other reasons covered by the WTO Agreement on Technical Barriers to Trade have the largest effect in Canada and New Zealand, reducing the number of exporting countries by 27% compared to the situation where no compliance requirement is imposed. However, we generally find a statistically significant positive effect for nontariff measures that do not impose a compliance burden, suggesting that such measures may facilitate trade.

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Section: Introductionsupporting

confidence: 92%

Section: Previous Studiesmentioning

confidence: 99%

Section: Robustness Checksmentioning

confidence: 99%

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Market access implications of non‐tariff measures: Estimates for four developed country markets

2018

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“…Thus, NTMs can eliminate a market failure by reducing the cost of determining the quality of a product, thereby helping to prevent a lemon problem (Akerlof 1970). This point is also made by Crivelli and Gröschl (2012), Disidier et al (2008), and Ganslandt and Markusen (2001).…”

Section: Non-tariff Measures: Stylized Factsmentioning

confidence: 60%

Poverty Reduction through Regional Integration: Technical Measures to Trade in Central America

Reyes

Kelleher

2015

JEI

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Despite the widespread tariff reductions sparked by the Dominican Republic-Central America Free Trade Agreement, anecdotal evidence suggests that borders in the region remain thick, with many hurdles standing in the way of regional integration. This paper uses a newly collected dataset to quantify the incidence of sanitary and phytosanitary measures and technical barriers to trade in the region. The results indicate that Central America has the lowest prevalence of technical non-tariff measures in the world. However, substantial heterogeneity is observed among countries. The paper estimates that the impact of sanitary and phytosanitary measures on border prices is equivalent to an ad-valorem tariff of 11.6%. This effect is further investigated by looking in detail at the effect on the prices of beef, chicken meat, bread, and dairy products in Guatemala. Acknowledgements:The authors thank Oscar Calvo, Jasmin Chakeri, Mariem Malouche, Michael Ferrantino, Sebastian Saez, Olivier Cadot, Magaly Clavijo, Mayra Del Carmen Alfaro De Moran, and Ana Paula Cusolito for helpful comments and discussions. We also benefitted from constructive comments from anonymous referees. We also thank participants at the workshop on Non-Tariff Measures in Central America, held in San José, Costa Rica on September 2013. All remaining errors are our responsibility. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not represent the view of the World Bank, its Executive Directors, or the countries they represent. Kelleher acknowledges funding by the Irish Research Council. 645The impact is estimated to be equivalent to an ad-valorem tariff of 68.4%, 51.4%, 22.0%, and 5.0%, respectively. The paper shows that efforts to streamline key sanitary and phytosanitary measures affecting these products by, for example, reducing the cost and time required to obtain sanitary registries, would likely reduce the Guatemalan urban extreme poverty rate from 5.07% to 4.91%. JEL Classifications: F13, F15, I32

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“…These negative effects are less accentuated for larger firms. Similarly, Crivelli and Groeschl (2016) analyze the impact of SPS on both market entry and bilateral trade values of agricultural and food products. The authors find that aggregated SPS measures reduce the probability of entering new markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of nontariff measures on firms in Tunisia

Baghdadi¹,

Kheder

Arouri³

2019

Review Development Economics

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This paper analyzes the effect of nontariff measures (NTMs) on firms in Tunisia. It draws a precise picture of NTMs’ effects on firms’ imports. We use firm‐level data to take into account firm heterogeneity. We explore the impact of NTMs on small vs. medium and large firms. We also consider the differentiated impact of NTMs. Some measures have informational content and help reduce information asymmetries. When the endogeneity issue of NTMs is controlled for, results show an overall positive impact of NTMs on imports. They provide evidence that NTMs are more beneficial to the imports of medium and large firms. Moreover, NTMs with informational content have an import enhancing effect. An extended analysis separating importing and exporting firms from those solely importing suggests that both types of firms benefit from the positive effects of NTMs. This result highlights the need to assist small firms facing NTMs. Furthermore, some NTMs with informational content should be addressed carefully and not considered only as barriers to trade to be eliminated. Instead, harmonization efforts between countries can be a better policy.

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The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows

Cited by 96 publications

References 36 publications

Market access implications of non‐tariff measures: Estimates for four developed country markets

Market access implications of non‐tariff measures: Estimates for four developed country markets

Poverty Reduction through Regional Integration: Technical Measures to Trade in Central America

Impact of nontariff measures on firms in Tunisia

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