Foletti, Liliana; Shingal, Anirudh (October 2014). Stricter regulation boosts exports: the case of Maximum Residue Levels in pesticides (NCCR Trade Regulation Working Paper 2015/22). Bern: NCCR Trade Regulation
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Constructing an original panel on Maximum Residue Levels (MRLs) in pesticides for 50 countries over 2006-2012, this paper studies the effect of heterogeneity in MRL regulation on bilateral trade. We find evidence of regulatory heterogeneity diminishing trade at the extensive margin when the exporter faces more stringent regulation abroad, suggesting compliance costs in entering the destination market. Significantly, however, we also find strong evidence of regulatory heterogeneity increasing trade at the intensive margin for exports coming from countries that set the strictest standards, alluding to the positive informative effect of such regulation.
Item Type: |
Working Paper |
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Division/Institute: |
02 Faculty of Law > Department of Economic Law > World Trade Institute 10 Strategic Research Centers > World Trade Institute 02 Faculty of Law > Department of Economic Law > NCCR International Trade Regulation |
UniBE Contributor: |
Shingal, Anirudh |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics 300 Social sciences, sociology & anthropology > 340 Law |
Series: |
NCCR Trade Regulation Working Paper |
Publisher: |
NCCR Trade Regulation |
Funders: |
[UNSPECIFIED] Swiss National Science Foundation |
Language: |
English |
Submitter: |
Pablo Rahul Das |
Date Deposited: |
07 Jul 2016 13:25 |
Last Modified: |
05 Dec 2022 14:56 |
Related URLs: |
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JEL Classification: |
I18, F13, F14 |
BORIS DOI: |
10.7892/boris.83793 |
URI: |
https://boris.unibe.ch/id/eprint/83793 |