Abstract
This paper investigates the impact of high U.S. maximum residue limit (MRL) standards on U.S vegetable exports to 102 countries utilizing the hierarchical model. MRL, which is one of non-tariff barriers with respect to food safety, is applied to home and foreign countries at the same time. Thus, firms in countries with higher food safety standards are expected to have a competitive advantage from the ‘signaling effect’. The results show that high MRL standards in the U.S. have a positive impact on U.S. vegetable exports, indicating the ‘signaling effect’ from the strict U.S. domestic MRL standards. The results provide policy makers with insights into how strict food safety regulations of the home country can be considered as a catalyst for increasing competitiveness in international markets.
Original language | English |
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Pages (from-to) | 150-159 |
Number of pages | 10 |
Journal | Economic Analysis and Policy |
Volume | 59 |
DOIs | |
State | Published - Sep 2018 |
Bibliographical note
Publisher Copyright:© 2018 Economic Society of Australia, Queensland
Keywords
- Food safety regulation
- Maximum residual limits (MRL)
- Mixed effect model
- Signaling effect
- Vegetable exports
ASJC Scopus subject areas
- Economics and Econometrics