[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/13764.html
   My bibliography  Save this paper

Friends or Foes? The Impact of Voluntary Sustainability Standards on Agricultural Exports of Developing Countries

Author

Listed:
  • Dolabella, Marcelo
  • Saeteros, Mario
Abstract
Private actors have been actively working on standards that certify products and their production processes to minimize negative externalities. The number of Voluntary Sustainability Standards (VSS) has been increasing over the last few decades, raising interest in understanding their impact on trade flows. Standards governing the production of agricultural commodities are especially crucial for developing countries as these goods often constitute a significant portion of their exports. Using a structural gravity model, we investigate how VSS certification affects exports for developing countries across eight highly traded commodities, and twelve VSS certification schemes from 2013 to 2021. Our analysis highlights how these effects differ for Latin America and the Caribbean compared to the rest of the world. The results indicate a positive and significant effect of VSS certification on exports, with on average a one percent increase in VSS coverage, resulting in a 1.86% increase in export value. We observed positive and significant impacts on bananas, palm oil, tea, and cotton exports. Our findings also suggest that trade gains are larger for lower-income exporters trading with high-income destinations, suggesting an important role of VSS in reducing information asymmetries. Also, we observe that the proliferation of standards might reduce the positive effects associated with VSS adoption for the main agricultural producers.

Suggested Citation

  • Dolabella, Marcelo & Saeteros, Mario, 2024. "Friends or Foes? The Impact of Voluntary Sustainability Standards on Agricultural Exports of Developing Countries," IDB Publications (Working Papers) 13764, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:13764
    DOI: http://dx.doi.org/10.18235/0013030
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Friends-or-Foes-The-Impact-of-Voluntary-Sustainability-Standards-on-Agricultural-Exports-of-Developing-Countries-.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.18235/0013030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. J. M. C. Santos Silva & Silvana Tenreyro, 2022. "The Log of Gravity at 15," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(3), pages 423-437, September.
    2. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    3. Grassnick, Nina & Brümmer, Bernhard, 2021. "Do voluntary sustainability standards increase countries' access to cocoa export markets?," GlobalFood Discussion Papers 310535, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Sanderson, Eleanor & Windmeijer, Frank, 2016. "A weak instrument F-test in linear IV models with multiple endogenous variables," Journal of Econometrics, Elsevier, vol. 190(2), pages 212-221.
    5. Raluca Dragusanu & Eduardo Montero & Nathan Nunn, 2022. "The Effects of Fair Trade Certification: Evidence from Coffee Producers in Costa Rica," Journal of the European Economic Association, European Economic Association, vol. 20(4), pages 1743-1790.
    6. Dela-Dem Doe Fiankor & Insa Flachsbarth & Amjad Masood & Bernhard Brümmer, 2020. "Does GlobalGAP certification promote agrifood exports? [Standards as barriers versus standards as catalysts: assessing the impact of HACCP implementation on US seafood imports]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 247-272.
    7. Maddalena Conte & Pierre Cotterlaz & Thierry Mayer, 2022. "The CEPII Gravity Database," Working Papers 2022-05, CEPII research center.
    8. Blackman, Allen & Goff, Leonard & Rivera Planter, Marisol, 2018. "Does eco-certification stem tropical deforestation? Forest Stewardship Council certification in Mexico," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 306-333.
    9. Spencer Henson & John Humphrey, 2010. "Understanding the Complexities of Private Standards in Global Agri-Food Chains as They Impact Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1628-1646.
    10. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    11. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    12. Dela‐Dem Doe Fiankor & Inmaculada Martínez‐Zarzoso & Bernhard Brümmer, 2019. "Exports and governance: the role of private voluntary agrifood standards," Agricultural Economics, International Association of Agricultural Economists, vol. 50(3), pages 341-352, May.
    13. Egger, Peter & Larch, Mario, 2008. "Interdependent preferential trade agreement memberships: An empirical analysis," Journal of International Economics, Elsevier, vol. 76(2), pages 384-399, December.
    14. Susmita Dasgupta & Ashoka Mody & Subhendu Roy & David Wheeler, 2001. "Environmental Regulation and Development: A Cross-country Empirical Analysis," Oxford Development Studies, Taylor & Francis Journals, vol. 29(2), pages 173-187.
    15. Anna Andersson, 2019. "The trade effect of private standards," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(2), pages 267-290.
    16. Goedhuys, Micheline & Sleuwaegen, Leo, 2016. "International standards certification, institutional voids and exports from developing country firms," International Business Review, Elsevier, vol. 25(6), pages 1344-1355.
    17. Schuster, Monica & Maertens, Miet, 2015. "The Impact of Private Food Standards on Developing Countries’ Export Performance: An Analysis of Asparagus Firms in Peru," World Development, Elsevier, vol. 66(C), pages 208-221.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Yuquan & Fiankor, Dela-Dem Doe & Tan, Fuli, 2021. "An assessment of the effect of the Round Table on Responsible Soy certification on soybean exports," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329433, Asian Society of Agricultural Economists (ASAE).
    2. Dela-Dem Doe Fiankor & Insa Flachsbarth & Amjad Masood & Bernhard Brümmer, 2020. "Does GlobalGAP certification promote agrifood exports? [Standards as barriers versus standards as catalysts: assessing the impact of HACCP implementation on US seafood imports]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 247-272.
    3. Laura M. G. Hidalgo & Rosane N. de Faria & Roberta Souza Piao & Christine Wieck, 2023. "Multiplicity of sustainability standards and potential trade costs in the palm oil industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 263-284, January.
    4. Neda Trifkovic, 2024. "Certifiable management standards, labor productivity, and worker wages: Evidence from the food sector in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 161-184, January.
    5. Rindler, Michael, 2021. "Changing Language Skills and Trade in Europe," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242449, Verein für Socialpolitik / German Economic Association.
    6. Ehrich, Malte & Mangelsdorf, Axel, 2016. "The Role of Private Standards for Manufactured Food Exports from Developing Countries," GlobalFood Discussion Papers 243400, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    7. Fiankor, Dela-Dem Doe & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2018. "Exports and governance: the role of private voluntary standards," GlobalFood Discussion Papers 275059, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Fiankor, D.-D. & Martinez-Zarzoso, I. & Brummer, B., 2018. "Exports and Governance: the Role of Private Voluntary Certification," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277113, International Association of Agricultural Economists.
    9. Sinthavanh Chanthavong, 2024. "Quantifying the impact of trade liberalization on Lao imports (evidence from product-level data)," International Journal of Economic Policy Studies, Springer, vol. 18(2), pages 455-474, August.
    10. Dela-Dem Doe Fiankor & Daniele Curzi & Alessandro Olper, 2021. "Trade, price and quality upgrading effects of agri-food standards [Endogenous Trade Policy with Heterogeneous Firms]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 835-877.
    11. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    12. Zouheir El-Sahli, 2023. "The Partial and General Equilibrium Effects of the Greater Arab Free Trade Agreement," The International Trade Journal, Taylor & Francis Journals, vol. 37(2), pages 185-199, March.
    13. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    14. Kox, Henk L.M. & Rojas Romasgosa, Hugo, 2019. "Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements," MPRA Paper 96318, University Library of Munich, Germany.
    15. Lijiao Hu & Yuqing Zheng & Timothy A. Woods & Yoko Kusunose & Steven Buck, 2023. "The market for private food safety certifications: Conceptual framework, review, and future research directions," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 197-220, March.
    16. Ina C. Jäkel & Søren Østervig & Erdal Yalcin, 2024. "The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark," Review of International Economics, Wiley Blackwell, vol. 32(1), pages 161-189, February.
    17. Harald Oberhofer, 2019. "Die Handelseffekte von Österreichs EU-Mitgliedschaft und des Europäischen Binnenmarktes," WIFO Monatsberichte (monthly reports), WIFO, vol. 92(12), pages 883-890, December.
    18. repec:wsr:ecbook:2021:i:vii-006 is not listed on IDEAS
    19. Juyoung Cheong & Do Won Kwak & Kam Ki Tang, 2015. "Can Trade Agreements Curtail Trade Creation and Prevent Trade Diversion?," Review of International Economics, Wiley Blackwell, vol. 23(2), pages 221-238, May.
    20. Anne-Célia Disdier & Silvio Tai & Lionel Fontagné & Thierry Mayer, 2010. "Bilateral trade of cultural goods," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 575-595, January.
    21. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.

    More about this item

    Keywords

    Voluntary sustainability standards; Private standards; International trade; developing countries;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:13764. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.