research product . 2011

Reputation matters: Spillover effects in the enforcement of US SPS measures

Jouanjean, Marie-Agnes; Maur, Jean-Christophe; Shepherd, Ben;
Open Access English
  • Published: 07 Dec 2011
Abstract
This paper uses a novel dataset on United States food import refusals to show that reputation is an important factor in the enforcement of sanitary and phytosanitary measures. The strongest reputation effect comes from a country's own history of compliance in relation to a particular product. The odds of at least one import refusal in the current year increase by more than 300 percent if there was a refusal in the preceding year, after controlling for other factors. However, the data are also suggestive of the existence of two sets of spillovers. First, import refusals are less likely if there is an established history of compliance in relation to other goods in the same sector. Second, an established history of compliance in relation to the same product by neighboring countries also helps reduce the number of import refusals. These findings have important policy implications for exporters of agricultural products, especially in middle-income countries. In particular, they highlight the importance of a comprehensive approach to upgrading standards systems, focusing on sectors rather than individual products, as well as the possible benefits that can come from regional cooperation in building sanitary and phytosanitary compliance capacity.
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free text keywords: F15 - Economic Integration, F13 - Trade Policy ; International Trade Organizations, O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy, ACCOUNTING, AGRICULTURAL ECONOMICS, AGRICULTURE, BARRIER, CANNED FOODS, CANNING, COMMERCE, COMMODITIES, COMPETITIVENESS, CONTAINERS, COUNTRY FIXED EFFECTS, COUNTRY LEVEL, DATES, DEMOCRACY, DEPENDENT VARIABLE, DESCRIPTIVE STATISTICS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DUMPING, ECONOMETRIC MODEL, ECONOMIC PERFORMANCE, ECONOMIC POLICY, ECONOMIC RESEARCH, ECONOMIC REVIEW, ECONOMIC THEORY, EGG, EMPIRICAL MODEL, EMPLOYMENT, EXPLANATORY VARIABLE, FOOD IMPORTS, FOOD PRODUCTS, FOOD SAFETY, FOOD STANDARDS, FOODBORNE ILLNESSES, FOODS, FRUIT, FRUIT PRODUCTS, FRUITS, HAZARD, HISTORICAL DATA, INCOME, INCOME EFFECTS, INCOME GROUP, INCOME GROUPS, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, JURISDICTION, LABELING, LAGGED DEPENDENT, LOW INCOME, LOW-INCOME COUNTRIES, MARKET ACCESS, MEAT, MEATS, MIDDLE-INCOME COUNTRIES, NATURAL RESOURCES, NEGATIVE COEFFICIENT, NEW MARKET, NUTS, PATH DEPENDENCE, PER CAPITA INCOME, PESTICIDE, POLICY DISCUSSIONS, POLICY IMPLICATIONS, POLICY RESEARCH, POLITICAL ECONOMY, POLITICAL SCIENCE, POOR COUNTRIES, POSITIVE COEFFICIENT, POSITIVE CORRELATION, PRODUCTIVITY, RAPID INCREASE, REGRESSION RESULTS, REPUTATION, SALE, SEAFOOD, SPICES, SUPPLIER, TEA, TECHNICAL ASSISTANCE, TRACK RECORD, TRANSPARENCY, VEGETABLES, WORLD DEVELOPMENT INDICATORS
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