Does GlobalGAP certification promote agrifood exports?

Fiankor, Dela-Dem Doe; Flachsbarth, Insa; Masood, Amjad; Brümmer, Bernhard

doi:10.1093/erae/jbz023

Cited by 18 publications

(36 citation statements)

References 63 publications

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“…The statistically non-significant findings for developed countries are in line with recent empirical findings that the GlobalGAP certification-trade effect is larger for developing countries compared to developed countries (Fiankor et al, 2017;Andersson, 2018). By products, the positive effect of GlobalGAP certification on the bilateral governance distance is economically substantial for grapes and apples, but remain small for bananas.…”

Section: Resultssupporting

confidence: 84%

Exports and governance: the role of private voluntary agrifood standards

Fiankor

Martínez‐Zarzoso

Brümmer

2019

Agricultural Economics

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The empirical evidence that institutional differences across countries affect bilateral trade is robust. The crucial question remains how countries can enhance trade amid these differences. In this paper, we measure the degree to which governance and institutions differ between countries as "governance distance". Using a sample of EU/EFTA imports, we examine how adopting private agrifood safety standards modify the effect of governance distance on exports of fruits and vegetables, in particular apples, bananas and grapes within a structural gravity framework. Our results show that while increasing governance distance hinders bilateral trade, the interaction of standards and the governance distance is positively associated with exports, hence partially offsetting the direct trade-inhibiting effects of the latter. GlobalGAP certified countries see the trade-inhibiting effects of governance distance on their exports reduced by about 50%, ceteris paribus.

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Section: Resultssupporting

confidence: 84%

Exports and governance: the role of private voluntary agrifood standards

Fiankor

Martínez‐Zarzoso

Brümmer

2019

Agricultural Economics

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“…For example, the point estimate of −0.15 in Disdier et al (2008b) means that for OECD member states the introduction of a new standard decreases imports by 14% regardless of the origin of the product. 2 Even if some studies go further to assess the trade effects by income status of the exporting countries within the 1 On the other hand, by harmonising standards across countries, private voluntary standards established by retailers, such as GlobalGAP standards or the International Featured Standards, enhance trade (Ehrich and Mangelsdorf, 2018;Fiankor et al, 2020).…”

Section: Introduction█mentioning

confidence: 99%

The Heterogeneous Effects of Standards on Agricultural Trade Flows

Fiankor¹,

Haase²,

Brümmer³

2020

J Agricultural Economics

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This article uses a theory‐based translog gravity model to investigate the heterogeneous effects of food standards on aggregate agricultural trade. We revisit the ‘standards‐as‐barriers‐to‐trade’ debate with a distinctive twist. In contrast to existing works, we show that standards reduce trade but even more so for countries that trade smaller volumes. Our identification strategy exploits the within‐country variation in specific trade concerns. We confirm that stricter importer standards are indeed trade‐restrictive. However, the estimated trade cost elasticity varies depending on how intensively two countries trade. Specifically, it decreases in magnitude with an increasing import share of the exporter in the importing country's total imports. The reason is simple but intuitive; bigger trading partners find it more profitable to invest in meeting the costs of importer‐specific standards. This work is novel in showing that the standards–trade debate misses out on an important heterogeneity driven by existing import shares. Liberalising non‐tariff measures will favour smaller trading partners more than well‐established ones.

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“…The GlobalGAP standard was found to be an exemplar, and potential improvements are suggested to help support local sustainability standards. Fiankor et al (2017) provided further empirical evidence by assessing the effect of GlobalGAP certification on agrifood exports to high-value markets in EU and OECD countries. Empirically, we estimate a structural gravity model-that accounts for zero trade and endogeneity of certification-using a novel dataset of certified producers and land area cultivated to apples, bananas, and grapes from 2010 to 2015.…”

Section: ) Literature Reviewmentioning

confidence: 99%

Evaluating Several Models of Quality Management and Impacts on Lychee Price Applying for Vietnam Agriculture Products Value Chain Sustainable Development

Hong¹,

Nguyen²,

Huy³

et al. 2021

alinteri

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Sustainability of Vietnam agriculture value chain will be dependent on various factors such as skills and experience of farmers, advanced technology, agricultural engineering, standards and models such as VIETGAP or GLOBAL GAP, etc. The role is still important, but Vietnam's agricultural production still has many Weakness points compared to other countries in the region when comparing resource use efficiency (land, water and labor). As a result, the efficiency of agricultural production tends to decrease recently. Specifically, the growth in average agricultural labor productivity annual rate of Vietnam also decreased correspondingly from 2.7% in the period 1990-1999 to 2.5% in the period 2000-2013 (World Bank, 2016). In Vietnam, we will evaluate the effectiveness of VIETGAP and GLOBAL GAP models, principles and standards applying in Vietnam agriculture value chain in a specific case study. The research results show a strict condition for applying VIETGAP and GLOBAL GAP for better quality in agriculture, including: Conditions for soil, irrigation water, fertilizers, pest control, etc. Last but not least, we also use an econometric model to measure impacts of multi macro factors on lychee price in Vietnam market over past years 2014-2019. Regression results show that we need to control inflation at low level, stable GDP growth and trade balance and exchange rate to stabilize lychee price. The research findings are of value to policy makers, farmers and investors in making decisions to invest for sustainability of Vietnam agriculture value chain. We will also make suggestions for commercial bank system in agriculture sector development.

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Does GlobalGAP certification promote agrifood exports?

Cited by 18 publications

References 63 publications

Exports and governance: the role of private voluntary agrifood standards

Exports and governance: the role of private voluntary agrifood standards

The Heterogeneous Effects of Standards on Agricultural Trade Flows

Evaluating Several Models of Quality Management and Impacts on Lychee Price Applying for Vietnam Agriculture Products Value Chain Sustainable Development

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