GMO Regulations, International Trade and the Imperialism of Standards

Mauro Vigani, Valentina Raimondi () and Alessandro Olper ()

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: This paper deals with the quantification of GMO regulations on bilateral trade flows. A composite index of the 慶omplexity?of such regulations for sixty countries as well as an 憃bjective?score for six GMO regulatory sub-dimensions has been developed. Using a gravity model, we show how bilateral 憇imilarity?in GMO regulations, affect trade flows for the composite index and its components. Results show that bilateral distance in GMO regulations negatively affect trade flows, especially as an effect of labeling policies, approval process and traceability systems. Interesting, the trade reduction effect induced by GMO standards increase by a factor of four when GMO regulations is treated as endogenous to trade flows. This pattern is consistent with an international environment where large importing countries 慸ictate?the rules of the game to developing countries.

Keywords: GMO standards; Harmonization; Trade Flow; Gravity Model; Endogeneity (search for similar items in EconPapers)
JEL-codes: F13 F14 Q13 Q18 Q17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-reg
Date: 2010
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Working Paper: GMO regulations, international trade and the imperialism of standards (2010)
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Persistent link: http://EconPapers.repec.org/RePEc:lic:licosd:25510

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