Reputation Matters : Spillover Effects in the Enforcement of US SPS Measures

Reputation Matters : Spillover Effects in the Enforcement of US SPS Measures

This paper uses a novel dataset on United States food import refusals to show that reputation is an important factor in the enforcement of sanitary and phytosanitary measures. The strongest reputation effect comes from a country's own history...

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Bibliographic Details
Main Authors:	Jouanjean, Marie-Agnes, Maur, Jean-Christophe, Shepherd, Ben
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCOUNTING AGRICULTURAL ECONOMICS AGRICULTURE BARRIER CANNED FOODS CANNING COMMERCE COMMODITIES COMPETITIVENESS CONTAINERS COUNTRY FIXED EFFECTS COUNTRY LEVEL DATES DEMOCRACY DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPING COUNTRY DUMPING ECONOMETRIC MODEL ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC REVIEW ECONOMIC THEORY EGG EMPIRICAL MODEL EMPLOYMENT EXPLANATORY VARIABLE FOOD IMPORTS FOOD PRODUCTS FOOD SAFETY FOOD STANDARDS FOODBORNE ILLNESSES FOODS FRUIT FRUIT PRODUCTS FRUITS HAZARD HISTORICAL DATA INCOME INCOME EFFECTS INCOME GROUP INCOME GROUPS INTERNATIONAL MARKETS INTERNATIONAL TRADE JURISDICTION LABELING LAGGED DEPENDENT LOW INCOME LOW-INCOME COUNTRIES MARKET ACCESS MEAT MEATS MIDDLE-INCOME COUNTRIES NATURAL RESOURCES NEGATIVE COEFFICIENT NEW MARKET NUTS PATH DEPENDENCE PER CAPITA INCOME PESTICIDE POLICY DISCUSSIONS POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL SCIENCE POOR COUNTRIES POSITIVE COEFFICIENT POSITIVE CORRELATION PRODUCTIVITY RAPID INCREASE REGRESSION RESULTS REPUTATION SALE SEAFOOD SPICES SUPPLIER TEA TECHNICAL ASSISTANCE TRACK RECORD TRANSPARENCY VEGETABLES WORLD DEVELOPMENT INDICATORS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120105104752 http://hdl.handle.net/10986/3220

Description
Summary:	This paper uses a novel dataset on United States food import refusals to show that reputation is an important factor in the enforcement of sanitary and phytosanitary measures. The strongest reputation effect comes from a country's own history of compliance in relation to a particular product. The odds of at least one import refusal in the current year increase by more than 300 percent if there was a refusal in the preceding year, after controlling for other factors. However, the data are also suggestive of the existence of two sets of spillovers. First, import refusals are less likely if there is an established history of compliance in relation to other goods in the same sector. Second, an established history of compliance in relation to the same product by neighboring countries also helps reduce the number of import refusals. These findings have important policy implications for exporters of agricultural products, especially in middle-income countries. In particular, they highlight the importance of a comprehensive approach to upgrading standards systems, focusing on sectors rather than individual products, as well as the possible benefits that can come from regional cooperation in building sanitary and phytosanitary compliance capacity.

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