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 o...

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Veröffentlicht in:European review of agricultural economics 2020-04, Vol.47 (2), p.719-751
Hauptverfasser: Movchan, Veronika, Shepotylo, Oleksandr, Vakhitov, Volodymyr
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creator Movchan, Veronika
Shepotylo, Oleksandr
Vakhitov, Volodymyr
description 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.
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source PAIS Index; Oxford University Press Journals All Titles (1996-Current)
subjects Ambiguity
Companies
Exports
Food processing
Food processing industry
International trade
New technology
Production
Regulation
Tariffs
title Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine
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