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The Impact of Services Trade Restrictiveness on Food Trade

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  • Zongo, Amara

Abstract

International trade in goods requires service inputs such as transport, banking and financial services for production and transportation. Trade in goods and services are now closely linked and contribute to the growth of international trade. The goal of this study is to investigate the effects of restrictions in the banking, accounting, transportation and logistics sectors (cargo handling and custom brokerage) on food trade. We use a gravity model with panel data from 2014 to 2018 for 36 OECD countries, the OECD indices of individual country restrictions and regulatory difference by country pair to capture the level of restrictions in these sectors. Our results suggest that importing and exporting country restrictions have non-significant effects on aggregate food exports, but negative and significant impacts on exports of agricultural raw materials and perishable products (meat, dairy products, eggs, etc.). The regulatory disparity between countries in logistics and banking sectors emerge as the main barrier for food exports. However, these results can be mitigated through regulatory cooperation or harmonization of regulations.

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  • Zongo, Amara, 2020. "The Impact of Services Trade Restrictiveness on Food Trade," MPRA Paper 101658, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101658
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    More about this item

    Keywords

    Food trade; service sector; heterogeneity of standards; gravity model;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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