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On the Competitiveness Effects of Quality Labels: Evidence from the French Cheese Industry

Sabine Duvaleix-Tréguer (), Charlotte Emlinger (), Carl Gaigne and Karine Latouche ()
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Karine Latouche: SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST

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Abstract: The paper questions the impact of geographical indication labels on firm export competitiveness in the French cheese and cream industry. We use firm level data from the French custom and an original dataset of firms and products concerned by Protected Designations of Origin (PDO). Our estimations show that PDO labeling allows firms to increase their price by 11.5% on average. Moreover these products are perceived by consumers as products of better quality than non-PDO products. Regarding trade margins, while the effect on trade volume (the intensive margin of trade) is not significant, PDO labeling increases the probability of serving a foreign country (the extensive margin of trade). Our estimations show that exports of PDO products would increase by 11.4% if non-EU consumers value PDO label as much as EU consumers.

Keywords: product quality; trade margins; geographical indication; PDO; price (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cse, nep-eur and nep-int
Date: 2018
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01925630
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