The Political Economy of Standards: Does MRLs Matter in Cottonseed and its Trade?

Fazal Hadi, Zahoor Ul Haq and Javid Iqbal
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Fazal Hadi: PhD Scholar,Department of Economics, Abdul Wali Khan University, Mardan, KP, Pakistan.
Zahoor Ul Haq: Professor and Dean, Faculty of Business and Economics,Abdul Wali Khan University Mardan, KP, Pakistan.
Javid Iqbal: Assistant Professor, Department of Economics, Abdul Wali Khan University Mardan, KP, Pakistan.

Global Regional Review, 2017, vol. 2, issue 1, 177-196

Abstract: In this paper, we introduce three indices of trade which are consequently applied to the case maximum residue level, MRLs of pesticide. The aggregation indices of NTM i.e Li and Beghin index of trade, Heterogeneous index of trade (HIT) and actual heterogeneous index of trade (AHIT) regulations to compute their protectionism relative to international standards. The application of indices to Maximum Residue Limit (MRL) affecting cottonseed and its by-product i.e crude cottonseed oil and refined cottonseed oil, using a science-based standards Codex Alimentarius. In this analysis, the main aim of the article is to show the response of the maximum residue limits (MRLs) adopted by 50 importing countries on exports of the cottonseed commodities for the year 2005 to 2014. In this study, we estimate the augmented gravity model using the ordinary least squares (OLS) and Poisson regression estimators. The results show that maximum residue limits (MRLs) have a trade increasing effect on exports of the cottonseed commodities.

Keywords: Cottonseed; Poisson; OLS; and MRLs (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:aaw:grrjrn:v:2:y:2017:i:1:p:177-196

DOI: 10.31703/grr.2017(II-I).13

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