The Political Economy of Food Standard Determination: International Evidence from Maximum Residue Limits

Li, Yuan; Xiong, Bo; Beghin, John C.

doi:10.1142/9789813144415_0014

Cited by 15 publications

(23 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As with those of Kandilov and Zheng (), our results indicate that the negative impact of sunk costs on the probability of export market participation is higher when the destination market is a developed country. This result confirms our expectation that nations with higher incomes adopt stricter regulation (Li et al ).…”

Section: Estimation Resultssupporting

confidence: 92%

“…The reason could be greater product standards over time due to consumer preferences regarding agri‐food products, especially in developed countries. Looi Kee et al () as well as Li et al () offer another potential explanation, which is that policy makers adopt more stringent regulation as tariffs are reduced by various trade agreements.…”

Section: Estimation Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Analyzing Trade Liberalization Effects in the Egg Sector Using a Dynamic Gravity Model

Tamini

Doyon

Simon

2015

Canadian J Agri Economics

View full text Add to dashboard Cite

The objective of the paper is to explore potential changes in trade induced by a liberalization scenario when taking into account persistence in trading partners. Our approach is based on the development of a gravity model that takes into account the dynamics at the extensive margin of trade as well as the persistence effect of the intensity of trade. Our empirical contribution is on the egg sector, where the persistence in trading partners is acute. Our results indicate that the use of static models underestimate imports of table eggs by more than 50% in Canada, when compared with the use of panel dynamic specification. The dynamic specification helps explain why trade liberalizations often increase trade creation between countries that had already been trading partners, while new trading partnerships remain scarce following trade liberalization. Our results also confirm the importance of sunk cost and their negative impact on the probability of export market participation for developing countries. Those results raise questions regarding the benefit of trade liberalization for developing countries, in terms of accessing new market, if they do not benefit from special treatments. L'objectif de cetteétude est d'explorer un scénario de libéralisation du commerce qui prend en considération l'effet de persistance des partenaires commerciaux. Nous développons un modèle de gravité qui prend en considération la dynamique de la marge extensive et la persistance des partenaires commerciaux. Notre contribution empirique est au niveau du secteur des oeufs. Nos résultats indiquent que l'utilisation de modèle statique sous-estime l'impact de scénarios de libéralisation. Ainsi, les importations d'oeufs de table au Canada suivant un tel scénario sont sous-estimées de plus de 50% par rapport au modèle dynamique. La spécification dynamique permetégalement d'expliquer pourquoi la libéralisation du commerce augmente souvent leséchanges entre pays déjà partenaires commerciaux, alors que les gains au chapitre de la marge extensive sont modestes. Les résultats confirmentégalement l'impact négatif des coûts fixes sur la probabilité des pays en développement de participer aux marchés de l'exportation. Ces résultats soulèvent donc des questions quant aux bénéfices de la libéralisation deséchanges pour les pays en développement, en termes d'accès au marché en absence de traitements spécifiques. * Chaire de rechercheéconomique sur l'industrie des oeufs.

show abstract

Section: Estimation Resultssupporting

confidence: 92%

Section: Estimation Resultsmentioning

confidence: 99%

Analyzing Trade Liberalization Effects in the Egg Sector Using a Dynamic Gravity Model

Tamini

Doyon

Simon

2015

Canadian J Agri Economics

View full text Add to dashboard Cite

show abstract

“…Following this framework, a number of studies are undertaken to analyze trade policy measures, both tariffs and NTMs. Among them are widely recognized works carried out by Pincus (1975), Caves (1976), Ray (1981), Lavergne (1983), Baldwin (1985Baldwin ( , 1989), Anderson and Baldwin (1987), Li, Xiong, and Beghin (2014), and Herghelegiu (2018).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Three decades later, the pattern of trade policy determinants changes considerably. More recently, to examine a range of the economic and political determinants of MRLs, a political economy framework together with an econometric analysis is employed in Li et al (2014). It is found that countries with higher income and larger population implement stricter MRLs.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade restriction rationale for food safety implementation: Evidence from Southeast Asian Countries

Saraithong

2018

Cogent Economics & Finance

View full text Add to dashboard Cite

In response to the widespread use of food safety standards as a tool for restricting international trade, this study attempts to answer whether Southeast Asian countries follow this protectionist trend or not. It employs the political economy framework and focuses on the case of the implementation of maximum residue limits (MRLs) on 113 food products which these countries import from their trading partners. The study utilizes the logit model and marginal effects to find the determinants of MRLs implementation. The estimation includes both the sevencountries and the single-country models. As for the former, the result indicates that Southeast Asian countries simultaneously use MRLs both to raise people's quality of life via food safety implementation and to protect import-competing producers. On the other hand, each single-country model provides a clearer picture of the reasons for its enforcement of MRLs; one is with trade restriction motive, while the others are with welfare improving purpose. when Thailand and the United States negotiated on their FTA, she was part of the Thai negotiating team. Because of her long experience on international economic relations, when she entered the academic career, she continues to pursue her interest on this issue and expands it to cover such a new trade-related topic as standards. As Kasetsart University, her current work-place, is considered as the country's authority on agricultural matters, Wuthiya expands her horizon to include various topics relating to international trade in food and agriculture. PUBLIC INTEREST STATEMENTIn spite of their legitimate purpose of improving consumer welfare, food safety standards, especially maximum residue limits (MRLs) for chemical substances, have been used as trade protection measures. This paper examines the determining factors of the use of MRLs in Southeast Asian countries. Being able to identify their determinants could pave the way for an interpretation of the rationale for the MRLs implementation. This will show if it is to enhance consumer welfare through food safety enforcement or to create import barriers. The paper finds inconclusive reasons for the MRLs implementation in the region as a whole. These countries use MRLs both to improve people's well-being and to protect import-competing producers. In contrast, each nation seems to have its different reasons for the implementation of MRLs. The results of both the region and the each country should allow domestic and foreign stakeholders to respond more appropriately and minimize possibly unfavorable consequences.

show abstract

“…The application looks at the US shrimp market. The last manuscript in the protectionism section is unpublished and written with Bo Xiong and Yuan Li (Li, Xiong, and Beghin, 2014). It looks at the political economic determination of food standards using panel data on MRLs across countries and agricultural markets.…”

Section: Introductionmentioning

confidence: 99%

Front Matter

2016

World Scientific Studies in International Economics

View full text Add to dashboard Cite

The Political Economy of Food Standard Determination: International Evidence from Maximum Residue Limits

Cited by 15 publications

References 25 publications

Analyzing Trade Liberalization Effects in the Egg Sector Using a Dynamic Gravity Model

Analyzing Trade Liberalization Effects in the Egg Sector Using a Dynamic Gravity Model

Trade restriction rationale for food safety implementation: Evidence from Southeast Asian Countries

Front Matter

Contact Info

Product

Resources

About