Authors: Olayinka Idowu Kareem
Addresses: Development and Cooperative Economies, School of Business and Economics, University of Marburg, Marburg, Germany
Abstract: Sanitary and phytosanitary (SPS) measures' proliferation has effects on trade, particularly for Africa. This study investigates the effects of all the European Union's SPS on Africa's export of vegetables and coffee in a two-step model of Helpman et al. (2008). In all, 43 African countries are considered in the empirical analysis covering the period from 1995 to 2012. The study finds that standards are trade-inhibiting at both the extensive and intensive margins of exports for vegetables, while these measures are trade-restrictive at the extensive margin and trade-enhancing at the intensive margin for coffee. Thus, the findings suggest that the generalisation of the impact of standards from a single commodity is not plausible due to the significant differences in the costs of firm's compliance and the size of the exporters. The study recommends inclusive policies that will improve domestic capacity of regulatory institutions.
Keywords: food exports; Africa; EU; HMR model; European Union; sanitary measures; phytosanitary measures; SPS; food exports; vegetables; coffee exports; vegetable exports; trade-inhibiting standards; trade-restrictive standards; trade-enhancing standards; domestic capacity; regulatory institutions; regulations.
International Journal of Trade and Global Markets, 2016 Vol.9 No.4, pp.287 - 304
Received: 24 Mar 2015
Accepted: 16 Jan 2016
Published online: 24 Dec 2016 *