Non-tariff measures, quality and exporting:evidence from microdata in food processing in Ukraine

Abstract

Domestic non-tariff measures (NTM) influence firm’s production and import decisions. We introduce NTMs into a model with heterogeneous firms. NTMs increase the cost of production and play a role of a positive demand shifter. Interplay of these two factors leads to ambiguous impact of NTMs on extensive and intensive margins of trade. We test predictions of the model by looking at food-processing firms in Ukraine in 2008–2013. Evidence shows that more SPS regulations on inputs in upstream industries lead to exports of better quality products. At the same time, mandatory certifications have a negative impact on quality by limiting access of domestic firms to new technologies and equipment.

Publication DOI: https://doi.org/10.1093/erae/jbz034
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School
Additional Information: This is a pre-copyedited, author-produced PDF of an article accepted for publication in European Review of Agricultural Economics following peer review. The version of record Veronika Movchan, Oleksandr Shepotylo, Volodymyr Vakhitov, Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine, European Review of Agricultural Economics, , jbz034, is available online at: https://doi.org/10.1093/erae/jbz034
Full Text Link:
Related URLs: https://academi ... /jbz034/5552115 (Publisher URL)
PURE Output Type: Article
Published Date: 2019-08-20
Published Online Date: 2019-08-20
Accepted Date: 2019-06-05
Authors: Movchan, Veronika
Shepotylo, Oleksandr ( 0000-0003-4990-6025)
Vakhitov, Volodymyr

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Version: Accepted Version

Access Restriction: Restricted to Repository staff only until 20 August 2021.


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