EU Ban, HACCP Compliance and Shrimp Exports from Bangladesh

Mohammad Yunus

Bangladesh Development Studies, 2009, vol. 32, issue 3, 41-58

Abstract: The paper evaluates the impact of the European Union import ban in 1997 and HACCP compliance on Bangladesh’s shrimp exports by using an augmented gravity model. Panel estimation method was applied to capture the import country effect. The dynamic gravity model was found more suitable than the static one to explain shrimp exports from Bangladesh due to the presence of persistence. The results of the dynamic model show that the EU ban hurt Bangladesh shrimp exports by US$ 25 million in the short run along with a long run cost of about US$ 5 billion. However, through HACCP compliance, Bangladesh succeeded in exporting an additional US$ 18 million worth of shrimp in the short run. In the long run, HACCP compliance helped Bangladesh export an additional US$ 35 million annually. The results bring out significant role of policy incentives in increasing shrimp exports. Bangladesh needs to continue quality assurance system based on the HACCP to comply with SPS measures in order to boost its shrimp exports.

Keywords: EU Ban; HACCP Compliance; Shrimp Exports; Bangladesh (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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