Year: 2014
Type: article
Abstract: Maximum residue level ( MRL ) regulations in plant products can create unnecessary trade barriers on one hand and enhance demand via risk mitigation or quality assurance on the other. We stipulate a generalized gravity equation model to disentangle the effects of MRLs on the import demand and foreign exporters' supply. Applying the framework to the MRLs on pesticides imposed by high‐income Organization for Economic Co‐operation and Development countries, we find that the MRLs jointly enhance the import demand and hinder foreign exporters' supply. In addition, exporters from the less and least developed countries are more constrained by the MRLs than their competitors from the developed world . ( JEL F14 , Q17 )
Source: Economic Inquiry
DOI: 10.1111/ecin.12082
Authors: BO XIONG, JOHN BEGHIN
Institutions: University of California, Davis, Iowa State University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1811301869