Harmonization of Food Regulations and Trade in the Single Market: Evidence from Disaggregated Data

Vancauteren Mark and Henry de Frahan Bruno
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Vancauteren Mark: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)
Henry de Frahan Bruno: UNIVERSITE CATHOLIQUE DE LOUVAIN,(UCL), Belgium

No 2004021, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This paper uses a structural gravity model based on Anderson and van Wincoop (2003) to quantify and test the hypothesis that EU harmonization of food regulations increases EU bilateral trade. Using a self-constructed database that identifies processed food products at a detailed level covered by harmonization, our results suggest that bilateral exports subject to harmonized food regulations are 253 % greater than bilateral exports not covered by harmonized food regulations for 1998. The paper also estimates a tariff equivalent of trade costs that arises from non-harmonized food regulations which ranges between 73 % and 97 %. Both of these effects vary across food sub-sectors.

Keywords: Food Regulation; Harmonization; European Integration; Gravity Model (search for similar items in EconPapers)
JEL-codes: C31 F15 Q17 Q18 (search for similar items in EconPapers)
Date: 2004-10-01
New Economics Papers: this item is included in nep-eec and nep-reg
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2004021

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