Non-tariff measures, quality and exporting:  evidence from microdata in food processing in Ukraine

Veronika Movchan; Oleksandr Shepotylo; Volodymyr Vakhitov

doi:10.1093/erae/jbz034

Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine

Veronika Movchan, Oleksandr Shepotylo, Volodymyr Vakhitov

Research output: Contribution to journal › Article › peer-review

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.

Original language	English
Pages (from-to)	719–751
Number of pages	33
Journal	European Review of Agricultural Economics
Volume	47
Issue number	2
Early online date	20 Aug 2019
DOIs	https://doi.org/10.1093/erae/jbz034
Publication status	Published - Apr 2020

Bibliographical note

This is a pre-copyedited, author-produced PDF of an article accepted for publication in European Review of Agricultural Economics following peer review. The version of record Veronika Movchan, Oleksandr Shepotylo, Volodymyr Vakhitov, Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine, European Review of Agricultural Economics, , jbz034, is available online at: https://doi.org/10.1093/erae/jbz034

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abstract = "Domestic non-tariff measures (NTM) influence firm{\textquoteright}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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Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine

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