Hostname: page-component-586b7cd67f-gb8f7 Total loading time: 0 Render date: 2024-11-22T05:36:43.022Z Has data issue: false hasContentIssue false
  • English
  • Français

Food standards and exports: evidence for China

Published online by Cambridge University Press:  06 July 2012

AXEL MANGELSDORF ,
ALBERTO PORTUGAL-PEREZ  and
JOHN S. WILSON
AXEL MANGELSDORF
Affiliation:
BAM Federal Institute for Materials Research and Testing, Germany, and Technical University Berlin, Chair of Innovation Economics
ALBERTO PORTUGAL-PEREZ
Affiliation:
World Bank
JOHN S. WILSON
Affiliation:
World Bank
Get access Rights & Permissions [Opens in a new window]

Abstract

Using a new database on standards in China, we estimate the impact of voluntary and mandatory standards – either harmonized to international norms or purely domestic – on Chinese food exports. The dataset covers seven Chinese products over the period 1992–2008. We find that standards have a positive effect on China's export performance, as the benefits to standardization in terms of reducing potential information asymmetry and signaling enhance food safety, and quality in foreign markets seem to surpass compliance costs. Our estimation results show that the positive effect of Chinese standards is larger when they are harmonized to international measures. The results suggest that there are clear benefits to China's steps to base their domestic standards and regulations on international measures.

Type
Review Article
Information
World Trade Review , Volume 11 , Issue 3: Symposium Issue: Standards and Non-Tariff Barriers in Trade , July 2012 , pp. 507 - 526
Copyright
Copyright © Axel Mangelsdorf, Alberto Portugal-Perez and John S. Wilson 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, J. E. (2011), ‘The Specific Factors Continuum Model, with Implications for Globalization and Income Risk’, Journal of International Economics, 85(2): 74–185.Google Scholar
Anderson, J. E. and van Wincoop, E. (2003), ‘Gravity with Gravitas: A Solution to the Border Puzzle’, The American Economic Review, 93(1): 170–192.Google Scholar
Anderson, J. E. and Yotov, Y. V. (2011), ‘Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990–2002’, National Bureau of Economic Research Working Paper No. 17003.Google Scholar
Asian Development Bank (2007), ‘ADB Observations and Suggestions Policy Note: Suggestions on Strengthening Food Safety in the PRC’, Asian Development Bank.Google Scholar
Bai, L., Ma, C., Yang, Y., Zhao, S., and Gong, S. (2007), ‘Implementation of HACCP System in China: A Survey of Food Enterprises Involved’, Food Control, 18(9): 1108–1112.CrossRefGoogle Scholar
Blind, Knut and Jungmittag, A. (2005), ‘Trade and the Impact of Innovations and Standards: The Case of Germany and the UK’, Applied Economics, 37(12): 1385–1398.Google Scholar
Broughton, E. I. and Walker, D. G. (2010), ‘Policies and Practices for Aquaculture Food Safety in China’, Food Policy, 35(5): 471–478.Google Scholar
Caswell, J. A. and Hooker, N. H. (1996), ‘HACCP as an International Trade Standard’, American Journal of Agricultural Economics, 78(3): 775–779.CrossRefGoogle Scholar
Chen, C., Yang, J., and Findlay, C. (2008), ‘Measuring the Effect of Food Safety Standards on China's Agricultural Exports’, Review of World Economics, 144(1): 83–106.Google Scholar
Czubala, W., Shepherd, B., and Wilson, J. S. (2007), ‘Help or Hindrance? The Impact of Harmonized Standards on African Exports’, Policy Research Working Paper 4400, The World Bank Development Research Group Trade Team.CrossRefGoogle Scholar
de Melo, J. and Portugal-Perez, A. (2012), ‘Preferential Market Access Design: Evidence and Lessons from African Apparel Exports to the US and to the EU’, World Bank Policy Research Working Paper, forthcoming.Google Scholar
DIN and SAC (2011), ‘Deutsches Institut für Normung (DIN) and Standards Administration of China (SAC): German–China Standards Information Portal’, http://cn-e.standards-portal.de.Google Scholar
Du, M. M. (2010), ‘Reducing Product Standards Heterogeneity through International Standards in the WTO: How Far across the River?’, Journal of World Trade, 44(2): 295–318.Google Scholar
Eaton, J. and Tamura, A. (1994), ‘Bilateralism and Regionalism in Japanese and US Trade and Direct Foreign Investment Patterns’, Journal of the Japanese and International Economies, 8(4): 478–510.CrossRefGoogle Scholar
Fang, C. and Beghin, J. C. (2000), ‘Food Self-Sufficiency, Comparative Advantage, and Agricultural Trade: A Policy Analysis Matrix for Chinese Agriculture’, Staff General Research Papers 1627, Department of Economics, Iowa State University.Google Scholar
Ferro, E., Portugal-Perez, A., and Wilson, J. S. (2011), ‘Aid to the Services Sector Does It Affect Manufacturing Exports?', World Bank Policy Research Working Paper 5728, World Bank, Washington, DC.Google Scholar
Gale, F. and Buzby, J. C. (2009), ‘Imports from China and Food Safety Issues’, United States Department of Agriculture Economic Information Bulletin No. 52.Google Scholar
Harding, T. and Javorcik, B. S. (2011), ‘Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows’, The Economic Journal, 121: 1445–1476.Google Scholar
Henson, S. (2004), ‘Standards and Trade: An Overview’, University of Guelph, Ontario, Canada.Google Scholar
Henson, S. and Jaffee, S. (2008), ‘Understanding Developing Country Strategic Responses to the Enhancement of Food Safety Standards’, World Economy, 31(4): 548–568.Google Scholar
Hudson, J. and Jones, P. (2003), ‘International Trade in ‘Quality Goods?: Signalling Problems for Developing Countries’, Journal of International Development, 15(8): 999–1013.Google Scholar
ISO (2009), ‘ISO Members’, International Organization for Standardization, Geneva.Google Scholar
Jin, S., Zhou, J., and Ye, J. (2008), ‘Adoption of HACCP System in the Chinese Food Industry: A Comparative Analysis’, Food Control, 19(8): 823–828.Google Scholar
Leland, H. E. (1979), ‘Quacks, Lemons, and Licensing – Theory of Minimum Quality Standards’, Journal of Political Economy, 87(6): 1328–1346.Google Scholar
Mangelsdorf, A. (2011), ‘The Role of Technical Standards for Trade between China and the European Union’, Technology Analysis and Strategic Management, 23(7): 725–743.Google Scholar
Maskus, K., Otsuki, T., and Wilson, J. (2004), ‘The Costs of Complying with Foreign Product Standards for Firms in Developing Countries: An Econometric Study’, World Bank, Washington, DC.CrossRefGoogle Scholar
Moenius, J. (2004), ‘Information Versus Product Adaptation: The Role of Standards in Trade’, International Business and Markets Research Center Working Paper, Northwestern University, Evanston.Google Scholar
Moenius, J. (2006), ‘The Good, the Bad and the Ambiguous: Standards and Trade in Agricultural Products’, IATRC Summer Symposium, 28–30 May, Bonn.Google Scholar
Otsuki, T., Wilson, J. S., and Sewadeh, M. (2001), ‘What Price Precaution? European Harmonisation of Aflatoxin Regulations and African Groundnut Exports’, European Review of Agricultural Economics, 28(3): 263–283.Google Scholar
Ping, W. (2010), ‘On Standardization in China’, http://www.talkstandards.com/on-standardization-in-china.Google Scholar
Ping, W., Yiyi, W., and Hill, J. (2010), ‘Standardization Strategy of China – Achievements and Challenge’: East–West Center Working Paper, Economics Series No. 07.Google Scholar
Portugal-Perez, Alberto, Reyes, J. D., and Wilson, J. S. (2010), ‘Beyond the Information Technology Agreement: Harmonization of Standards and Trade in Electronics’, The World Economy, 33(12): 1870–1897.Google Scholar
SAC (2011a), ‘Standards Administration of China (SAC): Bulletin of National Standards, Various Issues’, http://www.sac.gov.cn/sac_en/BulletinofStandards.Google Scholar
SAC (2011b), ‘Standards Administration of China (SAC): National Standards Query’, http://www.sac.gov.cn/SACSearch/outlinetemplet/gjbzcx_en.jsp.Google Scholar
Songa, H. and Chen, K. (2010), ‘Trade Effects and Compliance Costs of Food Safety Regulations: The Case of China’, Agriculture and Agricultural Science Procedia, 1: 429–438.Google Scholar
Swann, G. M. P., Temple, P., and Shurmer, M. (1996), ‘Standards and Trade Performance: The British Experience’, Economic Journal, 106(438): 1297–1313.Google Scholar
Swann, G. P. (2010), International Standards and Trade: A Review of the Empirical Literature, OECD Trade Policy Working Papers, No. 97, OECD Publishing.Google Scholar
WHO (2011), ‘World Health Organization: Structure of the Codex Alimentarius Commission (CAC)’, http://www.who.int/foodsafety/codex/general_info/en/index3.html.Google Scholar
Wilson, J. S., Otsuki, T., and Majumdsar, B. (2003), ‘Balancing Food Safety and Risk: Do Drug Residue Limits Affect International Trade in Beef?’, Journal of International Trade and Economic Development, 12 (4): 377–402.CrossRefGoogle Scholar
Yue, N., Kuang, H., Sun, L., Wu, L., and Xu, C. (2010), ‘An Empirical Analysis of the Impact of EU's New Food Safety Standards on China's Tea Exports’, International Journal of Food Science and Technology, 45: 745–750.Google Scholar