Do Sanitary, Phytosanitary, and Quality-related Standards Affect International Trade? Evidence from Chilean Fruit Exports

Abstract

Increasing awareness of food safety issues has led to intensive use of sanitary, phytosanitary and quality-related regulations and standards, imposing a burden on exporting countries worldwide. This study assesses the impact of such regulations and standards estimating a gravity model for Chilean fresh fruit exports that incorporates a stringency-perception index that comprises different dimensions of trade requirements. Our results suggest that an increase in stringency has a negative and substantial effect on exported volumes, and the reduction is higher if stringency increases in developed countries. Results also showed that different dimensions have different effects on trade.