The Impact of Quarantine Policies on the Quality of Imports

Daniel Bunting and Kevin Fox
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Daniel Bunting: New South Wales Treasury

No 2014-01, Discussion Papers from School of Economics, The University of New South Wales

Abstract: In a contribution to the sparse literature on the impacts on consumers of quarantine restrictions, an innovative approach to analysing the effects of these policies on the prices and quality of imported products is proposed. Specifically, various index num- ber decompositions at different aggregation levels are considered for extracting quality changes from changes in the value of an imported good. Consistent with theory, an empirical application to mango imports for Australia reveals an increase in the quality of the imported bundle after the introduction of a new quarantine restriction. We be- lieve this to the first empirical evidence of the quality impact of biosecurity restrictions on imports.

Keywords: Quarantine; trade barriers; index numbers; quality change (search for similar items in EconPapers)
JEL-codes: C43 D40 F13 Q18 Q57 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-01
New Economics Papers: this item is included in nep-agr and nep-int
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