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Standards, reputation, and trade: evidence from US horticultural import refusals

Published online by Cambridge University Press:  06 July 2012

MARIE-AGNÈS JOUANJEAN
MARIE-AGNÈS JOUANJEAN*
Affiliation:
LICOS Centre for Institutions and Economic Performance, K.U. Leuven and GEM Groupe d'Economie Mondiale, Sciences Po
*
*Email: [email protected]
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Abstract

By disentangling productivity- from quality-sorting in horticultural exports, this paper investigates the impact of food safety standards and consumers’ preference for quality on developing countries’ capacity to export high care and differentiated agricultural products (HCAs). Using a unique database on US import refusals, the empirical analysis shows that a shock to reputation has a downgrading effect, reducing the capacity to participate and benefit from trade in HCAs. The occurrence of at least one refusal in the current year reduces HS 6-digit average unit export price by over 8% and the long-run propensity suggests a 25% cut.

Type
Review Article
Information
World Trade Review , Volume 11 , Issue 3: Symposium Issue: Standards and Non-Tariff Barriers in Trade , July 2012 , pp. 438 - 461
Copyright
Copyright © Marie-Agnès Jouanjean 2012

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