Stricter regulation boosts exports: the case of Maximum Residue Levels in pesticides

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

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:

Rebecca Anne Gilgen

Date Deposited:

07 Jul 2016 13:25

Last Modified:

10 Sep 2017 07:32

Related URLs:

JEL Classification:

I18, F13, F14

BORIS DOI:

10.7892/boris.83793

URI:

https://boris.unibe.ch/id/eprint/83793

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