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: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
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College of Business and Social Sciences > 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
Publication ISSN: 1464-3618
Full Text Link:
Related URLs: https://academi ... /jbz034/5552115 (Publisher URL)
PURE Output Type: Article
Published Date: 2020-04
Published Online Date: 2019-08-20
Accepted Date: 2019-06-05
Authors: Movchan, Veronika
Shepotylo, Oleksandr (ORCID Profile 0000-0003-4990-6025)
Vakhitov, Volodymyr

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