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GTAP Resource #7287

"Pesticide Regulatory Heterogeneity, Trade, and Global Agricultural Value Chains"
by Dalheimer, Bernhard, Dela Dem Doe Fiankor and Gabriele Mack

Regulations on the production and consumption of goods are very heterogeneous across countries. Whereas the effects of regulations on exports are well known, the responses of importers to heterogeneous and frequently changing country-specific regulations are not well understood. We combine Swiss blue firm-level import customs transaction data with country-product-year-specific maximum residue limits to investigate the effect of pesticide regulatory heterogeneity on firm-level imports and assess the moderating role of firm size and global value chain participation. Relying on a global sourcing model, we find that regulatory heterogeneity reduces imports but less so in larger, and diversified firms. Participating in global value chains also improves firms' flexibility toward heterogeneous regulation. Business diversification---while reducing the gains from trade and scale---could help firms cope with heterogeneous international regulations.

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Created: Dalheimer, B. (4/15/2024)
Updated: Dalheimer, B. (4/15/2024)
Visits: 134
- Agricultural policies
- Non-Tariff barriers
- Supply chains

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