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

Thumbnail Image
Date
2013-11-01
Authors
Xiong, Bo
Beghin, John
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Person
Beghin, John
Retired Faculty
Research Projects
Organizational Units
Journal Issue
Is Version Of
Versions
Series
Department
Center for Agricultural and Rural Development
Abstract

Maximum residue levels (MRLs) regulations in plant products can create unnecessary trade barriers on one hand and enhance demand via risk mitigation or quality assurance on the other. We stipulate a generalized gravity equation model to disentangle the effects of MRLs on the import demand and foreign exporters’ supply. Applying the framework to the MRLs on pesticides imposed by high-income OECD countries, we find that 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 by the MRLs than their competitors from the developed world.

Comments
Description
Keywords
Citation
DOI
Source
Copyright
Collections