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Geographical indication regulation and intra‐trade in the European Union
Author(s) -
Sorgho Zakaria,
Larue Bruno
Publication year - 2014
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12125
Subject(s) - european union , international trade , resizing , geographical indication , international economics , gravity model of trade , business , trade barrier , panel data , economics , geography , regional science , econometrics
Abstract Protection of indications of geographical origin (GIs) can reduce information asymmetry between producers and consumers, and potentially enhance trade. However, GIs can also possibly divert trade. We rely on panel data about agri‐food trade among the 27 countries of the European Union to investigate these issues using variations of estimators proposed by Head and Mayer ([Head, K., 2000]) and Santos Silva and Tenreyro ([Silva, J.M.S., 2006]). Our findings suggest that the protection of GIs creates trade when the importing and exporting countries have GI‐protected products. There is also empirical evidence regarding a trade‐diverting effect when the importing country does not have GIs and a border enlargement effect arising from European GI‐protection.