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International trade and endogenous standards: the case of GMO regulations

Published online by Cambridge University Press:  06 July 2012

MAURO VIGANI ,
VALENTINA RAIMONDI  and
ALESSANDRO OLPER
MAURO VIGANI
Affiliation:
Università degli Studi di Milano
VALENTINA RAIMONDI
Affiliation:
Università degli Studi di Milano
ALESSANDRO OLPER*
Affiliation:
Università degli Studi di Milano & LICOS
*
*Email: [email protected]
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Abstract

This paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.

Type
Review Article
Information
World Trade Review , Volume 11 , Issue 3: Symposium Issue: Standards and Non-Tariff Barriers in Trade , July 2012 , pp. 415 - 437
Copyright
Copyright © Mauro Vigani, Valentina Raimondi and Alessandro Olper 2012

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