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The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows
Author(s) -
Crivelli Pramila,
Groeschl Jasmin
Publication year - 2016
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12283
Subject(s) - gravity model of trade , phytosanitary certification , conformity assessment , economics , gravity equation , technical barriers to trade , agriculture , bilateral trade , international economics , trade barrier , international trade , product (mathematics) , market access , econometrics , geography , mathematics , operations management , economic growth , geometry , archaeology , china
In an attempt to disentangle the impact of sanitary and phytosanitary ( SPS ) measures on trade patterns, we use the database on specific trade concerns on SPS measures of the WTO . Estimating various gravity model specifications at the HS 4 disaggregated level of trade, we find that aggregated SPS measures constitute obstacles to agricultural and food trade consistently to all exporters. But conditional on market entry, trade flows are positively affected by SPS measures. In addition, we find that SPS measures related to conformity assessment hamper market entry, while SPS measures related to product characteristics increase bilateral trade flows conditional on meeting the standard.