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Exports and Governance: the Role of Private Voluntary Certification

D.-D. Fiankor, Inmaculada Martínez-Zarzoso and B. Brummer

No 277113, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: Empirical evidence on the trade-governance nexus tends to show that institutional differences restrict bilateral trade flows. In this paper, we introduce governance gap as a measure of the degree to which governance and institutions differ between countries. Using a sample of EU imports from 193 exporting countries, we examine the potential of voluntary food certification as surrogate institutions to overcome the governance gap at the country level. Our results show that while widening governance gaps lead to lower bilateral exports, the interaction of certification and the governance gap is positively associated with bilateral exports, hence partially offsetting the direct trade-inhibiting effects Acknowledgement : This research was financially supported by the German Research Foundation (DFG) through the GlobalFood Program (grant number RTG 1666). We thank the GlobalGAP Head Office, Cologne for providing us data on certification. Dela-Dem Doe Fiankor gracefully acknowledges financial support from the Katholischer Akademischer Ausl ?ander-Dienst (KAAD), Germany

Keywords: International; Relations/Trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2018-07
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