Trade effects of geographical indication policy: The EU case
Valentina Raimondi
Search for more papers by this authorChiara Falco
Search for more papers by this authorDaniele Curzi
Search for more papers by this authorAlessandro Olper
Alessandro Olper Valentina Raimondi, Chiara Falco, Daniele Curzi are all in the Department of Environmental Science and Policy, University of Milano, Italy. E-mail: alessandro.olper@unimi.it for correspondence. Alessandro Olper is also with LICOS – Centre for institutions and Economic performance, KU Leuven, Belgium. This study has received funding from the European Union's Horizon 2020 research and innovation programme ‘Strength2Food’ under grant agreement No. 678024.Search for more papers by this authorValentina Raimondi
Search for more papers by this authorChiara Falco
Search for more papers by this authorDaniele Curzi
Search for more papers by this authorAlessandro Olper
Alessandro Olper Valentina Raimondi, Chiara Falco, Daniele Curzi are all in the Department of Environmental Science and Policy, University of Milano, Italy. E-mail: alessandro.olper@unimi.it for correspondence. Alessandro Olper is also with LICOS – Centre for institutions and Economic performance, KU Leuven, Belgium. This study has received funding from the European Union's Horizon 2020 research and innovation programme ‘Strength2Food’ under grant agreement No. 678024.Search for more papers by this authorAbstract
Using a new detailed dataset on country-product information on European Union (EU) Geographical Indications (GIs), we study the impact of this food quality policy on trade margins over the 1996–2014 period. We consider the effect of GIs on both intra- and extra-EU trade margins (extensive and intensive), as well as on export (and import) unit values. Our main results show that GIs affect trade flows differently depending on whether GIs are produced by the exporter or importer country. The presence of GIs in the exporter country systematically exerts a positive trade effect on both the extensive and intensive trade margin. When registered only in the importer country, GIs seem to act weakly as a trade-reducing measure, at least at the intensive trade margin. In addition, GIs positively affect export prices, consistent with the idea that GI products are perceived by consumers as higher quality goods. Importantly, extra-EU trade margins react similarly to those on intra-EU trade. These results have clear and interesting implications concerning the EU strategy of promoting the protection of GIs worldwide.
Supporting Information
Filename | Description |
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jage12349-sup-0001-Appendix_e.docxWord document, 72.3 KB |
Appendix A Table A1. Number of PDO and PGI products by country. Table A2. Extra-EU Countries with GI products. Table A3. Extra-EU countries included in the analysis. Table A4. GI effect on overall trade by sector – intra-EU trade. Table A5. GIs effect on exports’ unit values by sector – intra-EU trade. Table A6. GI effect on overall trade by sector – extra-EU trade. Table A7. GI effect on exports’ unit values by sector – extra-EU trade. Appendix B. Feenstra and Kee (2004) measures of the extensive and intensive margin. Appendix C. Table C1. First Stage of IV regressions of Table 4. Table C2. First Stage of IV regressions of Table 5. |
Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article.
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