Disentangling Demand-Enhancing and Trade-Cost Effects of Maximum Residue Regulations

Bo Xiong () and John Beghin ()

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: Abstract: Maximum residue levels (MRLs) regulations in plant products can createunnecessary trade barriers on one hand and enhance demand via risk mitigation or qualityassurance on the other. We stipulate a generalized gravity equation model to disentanglethe effects of MRLs on the import demand and foreign exporters' supply. Applying theframework to the MRLs on pesticides imposed by high-income OECD countries, we findthat the MRLs jointly enhance the import demand and hinder foreign exporters' supply.In addition, exporters from the less and least developed countries are more constrained bythe MRLs than their competitors from the developed world.

Keywords: MRL; sanitary and phytosanitary; SPS; standards; TBT; protectionism; maximum residue level; technical barriers; gravity model (search for similar items in EconPapers)
JEL-codes: F1 F14 Q17 (search for similar items in EconPapers)
Date: 2013-10-31
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published in Economic Inquiry 2014, vol. 52 no. 3, pp. 1190-1203

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http://www2.econ.iastate.edu/papers/p14393-2013-11-01.pdf (application/pdf)

Related works:
Chapter: DISENTANGLING DEMAND-ENHANCING AND TRADE-COST EFFECTS OF MAXIMUM RESIDUE REGULATIONS (2017)
Journal Article: DISENTANGLING DEMAND-ENHANCING AND TRADE-COST EFFECTS OF MAXIMUM RESIDUE REGULATIONS (2014)
Working Paper: Disentangling Demand-Enhancing and Trade-Cost Effects of Maximum Residue Regulations (2014)
Working Paper: Disentangling Demand-Enhancing and Trade-Cost Effects of Maximum Residue Regulations (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:34393

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