Standards, reputation, and trade: evidence from US horticultural import refusals

2012 ◽  
Vol 11 (3) ◽  
pp. 438-461 ◽  
Author(s):  
MARIE-AGNÈS JOUANJEAN

AbstractBy disentangling productivity- from quality-sorting in horticultural exports, this paper investigates the impact of food safety standards and consumers’ preference for quality on developing countries’ capacity to export high care and differentiated agricultural products (HCAs). Using a unique database on US import refusals, the empirical analysis shows that a shock to reputation has a downgrading effect, reducing the capacity to participate and benefit from trade in HCAs. The occurrence of at least one refusal in the current year reduces HS 6-digit average unit export price by over 8% and the long-run propensity suggests a 25% cut.

2020 ◽  
Vol 2 (3) ◽  
pp. 20-32
Author(s):  
Zhuiqiao JIN ◽  
Qi ZHENG ◽  
Yue QIN ◽  
Yunyi LIU

Agricultural products' tradeexpands between China and the countries along the Belt and Road while the cooperation is developing rapidly. Meanwhile, the countries' food safety standards along the Belt and Road are becoming more stringent for China's vegetable products. As one of the leading products exported by China's agricultural products, this article presents a quantitative study on whether food safety standards impact Chinese vegetable products' export. The quantitative model in the article takes food safety standards, the output volume of vegetable products in the exporting country, the economic size of the importing country, the geographical distance between the importing and exporting countries, the tariff level of the importing country, and the membership of the FTA as the independent variables, and the export scale of Chinese vegetable products to the countries along the Belt and Road as the dependent variable. The article investigates the impact of food safety standards in countries along the Belt and Road on Chinese vegetables' exports by applying the extended gravity model to 2017. In the empirical analysis, after combining the F-test, LM-test, and Hausmann test, the article chooses to use the fixed-effects model to regress the data. The empirical results show that the improvement of food safety standards set by countries along the Belt and Road in 2006-2017 does not significantly impact the export of Chinese vegetable products, and the relevant food safety standards set by China for vegetable products are relatively high. The importing country's economic size, the importing country's tariff level, and the FTA membership are the significant factors influencing China's export of vegetable products. Finally, based on the findings, this paper puts forward corresponding countermeasures and suggestions.


Author(s):  
Masoud Ali Khalid ◽  
Narmen Ghafor

Non-tariff measures such as food safety and technical standards are used to achieve the non-trade objective of protecting consumers’ health and safety. On the other hand, they can also be deployed as a trade secure tool to drive a price wedge between foreign and domestic producers. This study investigates the protectionist tools of 34 developing countries food safety standards using a sample of developing countries food imported from developed and other developing countries with a specific focus on vegetables, Trunks, machinery, and tobacco. We employ theoretical framework of gravity equation by applying SGMM estimation. Our results indicate that vegetable and machinery variables are negative and statistically significant. Meaning that both variables have a negative impact on GDP, in other words, both variables are not support GDP and economic growth in the developing countries. Finally, Trunk variable is positive and statistically significant. It shows that, this variable leads to promote economic growth in the developing countries. While Tobacco is positive and statistically insignificant, meaning that this product is not play an important role in the trade sector in our sample countries.


2020 ◽  
Vol 22 (2) ◽  
pp. 297-309
Author(s):  
Trung Tuyen Dang ◽  
Caihong Zhang ◽  
Thi Hong Nguyen ◽  
Ngoc Trung Nguyen

PurposeThe purpose of this paper is to evaluate the influence of VND/USD exchange rate on Vietnamese coffee export price (PVN).Design/methodology/approachThe study uses cointegration test, Granger causality test and vector autoregression (VAR) model.FindingsThe results reveal that there is no co-integrating equation between two variables. It means the exchange rate does not have an effect on PVN in the long run. Furthermore, there is one Granger causality relationship between VND/USD exchange rate and PVN in the short run, but not vice versa. The study suggests that the first previous period of PVN is the most closely related variable which has the greatest impact on the variation of PVN among the selected variables, meanwhile the effect of VND/USD exchange rate on it, contrarily, is positive and very trivial.Originality/valueIn overall, the impact of VND/USD exchange rate on Vietnamese coffee export price (PVN) has been analyzed deeply in this research by applying new approaches.


2016 ◽  
Vol 18 (2) ◽  
pp. 89-98
Author(s):  
Abdul Holik ◽  
Aisyah Rosadi

This research aims to find the impact of sharia finance toward the value-added of agricultural products in Indonesia, by using the data from 2005 until 2011. The OLS method was used to findcausal relationship among the variables, i.e. the value-added of agricultural products, manufacture products, and sharia finance. The result showed that sharia finance had positive significant impact on the value-added of agricultural products; meanwhile value-added of manufacture product had negative significant impact on the value-added of agricultural products. This is an evidence the important role of sharia finance in boosting agricultural value-added in the long-run, as well as for other industries.


Author(s):  
Mollie Woods ◽  
Suzanne Thornsbury ◽  
Kellie Curry Raper ◽  
Richard N. Weldon

Author(s):  
Mohini Gupta ◽  
Sakshi Varshney

The centre interest of the study is to explore the impact of exchange rate volatility on the India-U.S. trade flow of Import on 6 industries spanned from September 2002 to June 2019. We investigate the relationship at disaggregate level by industry-wise data with monthly frequency. We employ exponential generalized autoregressive conditional heteroscedasticity (E-GARCH) model to gauge volatility and thereafter ARDL bound testing approach to unveil the short and long-run association of real exchange rate volatility and import. The empirical analysis implies the existence of both short-run and long-run effect in 5 importing industries except manufactured (engineering) goods. While real exchange volatility appears to have statistically significant effect in short-run, but also estimated short-run lasts onto long-run effect in only three industries. The results confirm the information of import in time-series analysis. The finding of the study helps to undertake the view of invariability and considering the industry before policy making.


2007 ◽  
Vol 227 (3) ◽  
Author(s):  
Kerstin Stahn

SummaryThe question as to whether the globalisation-related increase in competitive pressure may have caused the importance of cost pass-through (CPT) and pricing-to-market (PTM) for export pricing in Germany to shift since the 1990s is addressed by testing the long-run export pricing behaviour of German enterprises for changes in the impact of its determinants. As globalisation may have affected competitive pressure in individual product markets differently, export pricing is analysed for 11 product categories. Analytically, this problem is solved by applying the Saikkonen (1991) approach to estimate the individual export price categories in single equations. The first hypothesis – that CPT is stronger, and PTM weaker, for heterogeneous products than for homogeneous products – is found to hold more for CPT than for PTM. The second hypothesis, which presumes that CPT has weakened and PTM has strengthened since the 1990s, is confirmed with respect to the overall outcome, although for several product categories the results conflict with the hypothesis. Moreover, error correction models are used to test exporters’ short-run price-setting behaviour for asymmetry, ie whether short-run increases in the export price determinants are passed through to a different extent than decreases. It is shown that symmetric export pricing is seldom rejected.


Sign in / Sign up

Export Citation Format

Share Document