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North–South trade and standards: what can general equilibrium analysis tell us?

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  • SHELDON, IAN

Abstract

The tension between standards being a response to market failures versus creating barriers to trade characterizes much of their economic analysis. This article explores in more detail the link between international trade and standards based on resolution of a public bad(s) problem. Specifically, a general equilibrium setting is sketched out, drawing on existing analysis in the trade and environmental economics literature, and designed to capture some key stylized facts and basic hypotheses concerning North–South trade where standards are targeted at negative externalities in production. The key conclusions to be drawn are that while a clear theoretical foundation exists for the hypothesis of ‘standards as barriers’ to trade, and the likely benefits of aid for trade programs, this is not the case for the hypothesis of ‘barriers as a catalyst’ for trade, pointing to the need for further research on the latter hypothesis.

Suggested Citation

  • Sheldon, Ian, 2012. "North–South trade and standards: what can general equilibrium analysis tell us?," World Trade Review, Cambridge University Press, vol. 11(3), pages 376-389, July.
    • Handle: RePEc:cup:wotrrv:v:11:y:2012:i:03:p:376-389_00
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    Citations

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    Cited by:

    1. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 595-617, September.
    2. Santeramo, Fabio G., 2017. "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 263493, European Association of Agricultural Economists.
    3. Santeramo, Fabio Gaetano & Lamonaca, Emilia, 2019. "The role of non-tariff measures in the agri-food sector: positive or negative instruments for trade?," MPRA Paper 96763, University Library of Munich, Germany.
    4. Kareem, Fatima Olanike & Martínez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2018. "Protecting health or protecting imports? Evidence from EU non-tariff measures," International Review of Economics & Finance, Elsevier, vol. 53(C), pages 185-202.
    5. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "On the impact of non-tariff measures on trade performances of the African agri-food sector," Agrekon, Taylor & Francis Journals, vol. 58(4), pages 389-406, October.
    6. Eum, Jihyun & Sheldon, Ian & Shin, Hyeseon & Thompson, Stanley, . "Upgrading Food Product Quality: Evaluating the Impact of Competition and Non-Tariff Measures," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(3).
    7. Meloni, Giulia & Swinnen, Johan, 2018. "Trade and terroir. The political economy of the world’s first geographical indications," Food Policy, Elsevier, vol. 81(C), pages 1-20.
    8. Ian M. Sheldon, 2021. "Reflections on a Career as an Industrial Organization and International Economist," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 468-499, June.
    9. Pasquali, Giovanni & Krishnan, Aarti & Alford, Matthew, 2021. "Multichain strategies and economic upgrading in global value chains: Evidence from Kenyan horticulture," World Development, Elsevier, vol. 146(C).
    10. Mao, Rui & Liu, Yuhang & Wang, Xiaoxi, 2023. "Economic and environmental impacts of agricultural non-tariff measures: evidence based on ad valorem equivalent estimates," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(3), January.
    11. Kari E. R. Heerman & Ian M. Sheldon, 2022. "Sustainable agricultural production, income, and eco‐labeling: What can be learned from a modern Ricardian approach?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1614-1636, December.
    12. Melo, Oscar & Engler, Alejandra & Nahuehual, Laura & Cofre, Gabriela & Barrena, José, 2014. "Do Sanitary, Phytosanitary, and Quality-related Standards Affect International Trade? Evidence from Chilean Fruit Exports," World Development, Elsevier, vol. 54(C), pages 350-359.

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