Nontariff Barriers as Bridge to Cross

Abdul B.A. Munasib and Devesh Roy

No 125025, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: Importing country standards emerge as an effective trade barrier when they exceed those of the exporting country’s domestic market. We introduce a new concept: bridge to cross (BTC), the regulatory gap between the exporting and importing countries. Importer regulations cannot be identified in a gravity model when multilateral resistance is correctly accounted for with exporter-time and importer-time fixed-effects. BTC, however, can be identified because it varies over time and by trading pair. As an application we apply the method to an SPS regulation regarding Aflatoxin contamination in maize. We find that the effect of BTC is higher for poorer countries.

Keywords: Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; International Development; International Relations/Trade; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 37
Date: 2011-01
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Working Paper: Nontariff Barriers as Bridge to Cross (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:125025

DOI: 10.22004/ag.econ.125025

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