@article{fiankor2024, author = {Fiankor, Dela-Dem Doe and Dalheimer, Bernhard and Mack, Gabriele}, title = {Pesticide regulatory heterogeneity, foreign sourcing, and global agricultural value chains}, journal = {American Journal of Agricultural Economics}, year = {forthcoming}, doi = {https://doi.org/10.1111/ajae.12496}, file = {fiankor2024.pdf}, slide = {fiankor2024_slide.pdf} }
Regulations on the production and consumption of goods are very heterogeneous across countries. Whereas the effects of regulations on exports are well known, the responses of importers to heterogeneous and frequently changing country-specific regulations are not well understood. We combine Swiss firm-level import customs transaction data with country-product-year-specific maximum residue limits to investigate the effect of pesticide regulatory heterogeneity on firm-level imports and assess the moderating role of firm size and global value chain participation. Relying on a global sourcing model, we find that regulatory heterogeneity reduces imports but less so in larger and diversified firms. Participating in global value chains also improves firms’ flexibility toward heterogeneous regulation. Business diversification—although reducing the gains from trade and scale—could help firms cope with heterogeneous international regulations.
@article{martey2023ntm, author = {Martey, Edward and Onumah, Edward Ebo and Onumah, Justina Adwoa and Fiankor, Dela-Dem Doe}, title = {Non-tariff measures and household welfare: Evidence from Ghana}, journal = {Journal of International Development}, volume = {36}, number = {2}, pages = {1150-1169}, year = {2024}, keywords = {food security, Ghana, household expenditure, household income, non-tariff measures, poverty}, doi = {https://doi.org/10.1002/jid.3859} }
Most studies on the impacts of non-tariff measures (NTMs) on economic outcomes are at the macro-level with limited micro-level studies. This study uses primary data on 604 commercial farm households in Ghana to examine the relationship between NTMs and household welfare outcomes. The results show that NTMs are positively associated with asset, household expenditure and income but negatively associated with food expenditure, household dietary diversity score (HDDS) and poverty probability index (PPI). We find that the results are not likely to be driven by unobserved heterogeneity. Our results suggest that the potential mechanisms through which NTMs influence welfare outcomes are household income and expenditure. The main implication of the study is that a reduction in the number of customs formalities and the cost of testing and certification can facilitate trade and contribute to the economic development of commercial farm households.
@article{afesorgbor2024, author = {Afesorgbor, Sylvanus Kwaku and Fiankor, Dela-Dem Doe and Demena, Binyam Afewerk}, title = {Do regional trade agreements affect agri-food trade? Evidence from a meta-analysis}, journal = {Applied Economic Perspectives and Policy}, volume = {46}, number = {2}, pages = {737--759}, year = {2024}, doi = {https://doi.org/10.1002/aepp.13410}, file = {aepp2024.pdf}, keywords = {agri-food trade, gravity model, meta-analysis, RTAs} }
Regional trade agreements (RTAs) have experienced significant growth worldwide, leading to an increase in studies assessing their impact on bilateral trade flows. With the availability of disaggregated trade data, numerous studies have examined the influence of these agreements specifically on agri-food trade. However, the results of these studies exhibit heterogeneity, posing challenges for policymakers seeking to understand the effects of RTAs on agri-food trade. To address this issue, we conducted a meta-analysis of 61 studies investigating the effects of various RTAs on agri-food trade. Using funnel asymmetric testing, our analysis reveals the presence of publication bias in the existing literature. By accounting for this bias, we found robust evidence that RTAs positively and significantly promote agri-food trade. Notably, the extent of this effect depends on the depth of economic integration within the RTA, distinguishing between customs unions and free trade agreements, as well as the classification of agri-food products as primary or processed. The ex-post effects of RTAs on agri-food trade are less pronounced when we control for both publication bias and heterogeneity, compared to controlling only for publication bias.
@article{chen2024, author = {Chen, Yuquan and Fiankor, Dela-Dem Doe and Tan, Fuli}, title = {Assessing the effect of the Round Table on Responsible Soy certification on soybean exports}, journal = {The World Economy}, year = {2024}, volume = {47}, number = {7}, pages = {2970--2994}, keywords = {agricultural trade, global supply chains, gravity models, Round Table on Responsible Soy, voluntary sustainability standards}, doi = {https://doi.org/10.1111/twec.13564}, file = {twe2024.pdf} }
To minimise the negative ecological effects of soybean production, multi-stakeholders along the global soybean supply chain collaborated to develop, implement and verify a global certification standard called the Round Table on Responsible Soy (RTRS). RTRS certification is almost a quasi-mandatory sustainability standard; however, its potential trade effects remain poorly understood. Using a structural gravity model that exploits country variations in RTRS-certified production volumes and certified land areas, we assess the effect of RTRS certification on soybean trade flows. We show that RTRS certification reduces trade flows, especially exports to non-OECD countries. In essence, developing countries experience lower imports in response to standards than do developed countries. Thus, reconciling international trade with environmental sustainability goals remains a challenge.
@article{fiankor2024_agecon, author = {Fiankor, Dela-Dem Doe and Dalheimer, Bernhard and Curzi, Daniele and Hoffmeister, Onno and Brümmer, Bernhard}, title = {Does it matter how we ship the good apples out? On specific tariffs, transport modes, and agricultural export prices}, journal = {Agricultural Economics}, year = {2024}, volume = {55}, number = {3}, pages = {498–-514}, keywords = {agricultural trade, export prices, mode of transport, specific tariffs, trade costs}, doi = {https://doi.org/10.1111/agec.12829}, file = {agecon2024.pdf} }
Free-on-board (FOB) export prices for identical products from the same origin often differ across destinations, even when accounting for the trade costs and attributes of the destination country. One explanation for this observed price difference is per-unit trade costs, and the ability of exporters to vary their markups and/or product quality. Using a novel dataset that details trade flows between countries by mode of transport, we estimate the transport mode-specific effect of a per-unit trade cost, specifically specific tariffs, on the FOB export prices of agricultural products. We find an elasticity of specific tariffs to export prices of 1.8%. However, the estimates are heterogeneous across modes of transport. The elasticity of specific tariffs to export prices is 2% for air transport, 5% for road transport, and .3% for sea cargo. Since the observed positive export price effect can reflect product quality differences or markups, we account for the quality element and find that for a given product quality, markups increase with increasing specific tariffs. This form of price discrimination is less pronounced for higher-quality products that are predominantly shipped by air.
@article{ritzel2024long, title = {The long-term effect of COVID-19 policy stringency on consumer food demand quantities in Switzerland}, author = {Ritzel, Christian and Mack, Gabriele and Fiankor, Dela-Dem Doe}, journal = {Journal of Agriculture and Food Research}, volume = {16}, number = {101119}, year = {2024}, publisher = {Elsevier}, file = {ritzel2024.pdf}, doi = {https://doi.org/10.1016/j.jafr.2024.101119} }
This is the first study investigating the effect of COVID-19 policy stringency on consumer food demand for the years 2020 and 2021. In particular, we compared food demand in periods with strict COVID-19 policies to food demand in periods with less strict COVID-19 policies. For this purpose, we used Switzerland, which imposed two COVID-19 lockdowns, as a case study. To test this link, we applied fixed effects dummy variable regressions (as baseline estimates) and dose–response functions. To capture the stringency of Swiss COVID-19 policies, we relied on daily data from the Oxford COVID-19 Government Response Tracker. Food demand data at the product level came from the combined retail and consumer panel of the market research company Nielsen and covered meat, milk products, vegetables, and fruits. Empirical findings revealed that consumer demand for all food products was on average 2.5 times higher during the two lockdowns compared to periods without lockdowns. While we found no statistically significant differences in consumer food demand between the two lockdowns for milk products, vegetables, and fruits, the total food demand and the demand for meat was higher during the first lockdown. Increases in Swiss food demand were likely caused by the closing of restaurants (both lockdowns) and the closing of borders to neighboring countries (only the first lockdown), preventing shopping tourism. Against the background of potential future pandemics, our research provides important information for policymakers on the quantification of food demand changes in times of crisis.
@article{lin2024, author = {Lin, Jessie and Fiankor, Dela-Dem Doe and Rosero, Gabriel}, title = {Revisiting the role of governance and institutions on agricultural production}, journal = {Journal of the Agricultural and Applied Economics Association}, volume = {3}, number = {3}, pages = {556-571}, year = {2024}, keywords = {agricultural production, cross-country panel, governance, replications}, doi = {https://doi.org/10.1002/jaa2.132}, file = {jaaea2024.pdf} }
This paper revisits the 2008 paper in Food Policy, “Governance and agricultural productivity: A cross-national analysis.” We estimate a country-level production function to assess the relationship between institutional indicators and agricultural production. We extend the analysis to a 22-year panel and use different functional forms. We test whether the governance and agricultural production effect varies across high and low-income countries. To check whether the choice of institutional measure drives the findings, we use two alternative indices. Our findings confirm the role of governance and institutions with quantitative differences in the estimates. We further discuss these and other heterogeneity in the paper.
@article{RITZEL2024100800, title = {How do non-reciprocal trade preferences affect the food exports and food availability per capita of Global South countries?}, journal = {Global Food Security}, volume = {42}, pages = {100800}, year = {2024}, issn = {2211-9124}, file = {gfs2024.pdf}, doi = {https://doi.org/10.1016/j.gfs.2024.100800}, author = {Ritzel, Christian and Fiankor, Dela-Dem Doe}, keywords = {Free trade, Developing countries, PPML regression, Food security} }
We investigate the historical effects of non-reciprocal preferential trade agreements (NRPTAs) on food exports and food availability per capita in 112 countries in the Global South to address concerns about their potential non-trade effects. Our empirical analyses use FAO Food Balance Sheet data for the years 1961–2013, covering 14 food categories and 91 product groups. We assess the link between NRPTA intensity - measured at the country level as the annaul sum of NRPTAs a country has in place - and the two outcomes using fixed effects dummy variable regressions. Our findings show that NRPTA intensity has a positive effect on food export performance and on food availability per capita, with heterogeneities across least developed, transition, and developing country groups, and its export effects do not jeopardize food insecurity.
@article{fiankor2023agri, title = {Agri-food importing firms amid a global health crisis}, author = {Fiankor, Dela-Dem Doe and Lartey, Abraham and Ritzel, Christian}, journal = {Food Policy}, volume = {119}, pages = {102507}, year = {2023}, publisher = {Elsevier}, file = {fp_2023.pdf}, slide = {fp_2023_slide.pdf}, doi = {https://doi.org/10.1016/j.foodpol.2023.102507}, policybrief = {fp_2023_policybrief.pdf}, month = jul }
This paper exploits daily customs transaction data on the universe of Swiss agri-food importing firms to assess the response of firms to a global shock. Estimating a linear model that regresses product-level import margins on daily COVID19 shocks and a host of fixed effects, we find that the pandemic had a substantial trade-reducing effect on imports. The trade effects were driven mainly by a reduction in the number of importing firms (i.e., 63% of the total effect), and much less by the number of products imported and the average import value per product per firm. We explore several sources of heterogeneity and show, among others, that larger and incumbent firms were affected more by the trade adjustments. Our results also reveal that the relative contribution of each import margin to the decline in aggregate imports depends on the level of data aggregation (i.e., daily, weekly or monthly). Finally, we validate and confirm our main findings by testing two mechanisms: (i) third-country supply-side effects using insights from structural gravity models and (ii) changes to consumer demand using consumer mobility, and retailer and consumer scanner data.
@article{fiankor2023revisiting, title = {Revisiting the impact of per-unit duties on agricultural export prices}, author = {Fiankor, Dela-Dem Doe and Santeramo, Fabio G}, journal = {Applied Economic Perspectives and Policy}, year = {2023}, volume = {45}, number = {3}, pages = {1472–1492}, publisher = {Wiley Online Library}, doi = {https://doi.org/10.1002/aepp.13368}, file = {aepp2023.pdf}, month = jun }
We replicate the findings of Emlinger and Guimbard (ERAE, 2021) on the heterogeneous effects of per‐unit tariffs on trade patterns for developed and developing countries. Analyzing import and export data from 2001 to 2013, they confirm the Alchian‐Allen conjecture that per‐unit trade costs induce higher export unit values. However, the effects are more pronounced for developed country exporters. Understanding the effects of per‐unit trade costs vis‐a‐vis ad valorem tariffs is important to level the playing field of trade negotiations that involve pricing and non‐pricing policies. We extend the original study with data for 191 exporting (190 importing) countries, and 670 HS6 digit products, covering the period 2001–2019 period. The general findings of the original study hold, with remarkable differences. First, using a data set that is constructed in a replicable way and introducing highly relevant bilateral fixed effects reduce effect sizes and the level of statistical significance. Second, the Alchian‐Allen effect is not clearly separated by the economic development dimension of the exporter, but rather dependent on the price levels of the traded goods. These results have important policy implications as they call for deeper investigation of countries’ industrial structures of exports to better shape the international debate on trade negotiations.
@article{chen2023assessing, title = {Assessing the role of institutional effectiveness on carbon sequestration: the case of China's nature reserve policy}, author = {Chen, Yuquan and Fiankor, Dela-Dem Doe and Kang, Kuan and Zhang, Qian}, journal = {China Agricultural Economic Review}, year = {2023}, volume = {15}, number = {4}, pages = {777-794}, publisher = {Emerald Publishing Limited}, doi = {https://doi.org/10.1108/CAER-05-2022-0092}, month = apr }
Carbon storage in protected land is a practical climate stabilisation strategy. It is increasingly being recognised as an essential means of safeguarding biomass carbon and improving local ecological condition. Yet, increasing carbon sequestration by setting aside nature reserves does not depend only on the scale of the reserve, but more so, on the implementation and enforcement of the reserve protection policy. This paper shows how nature reserves established and managed by different administrative levels affect carbon sequestration. Empirically, we estimate a time-varying difference-in-difference model that exploits China’s distinct four-layered hierarchical nature reserve management system at the county-level. Our findings show that higher administrative level (i.e., national and provincial) nature reserves have no effects on the carbon dynamic. However, reserves managed by lower administrative levels (i.e., prefecture- and county-level) are associated with reduced carbon sequestration. The results imply local governments fail to fulfil their responsibilities for nature reserves protection, leading to increased extractive activities and declined ecological biomass.
@article{fiankor2023distance, title = {Distance to destination and export price variation within agri-food firms}, author = {Fiankor, Dela-Dem Doe}, journal = {European Review of Agricultural Economics}, volume = {50}, number = {2}, pages = {563--590}, year = {2023}, publisher = {Oxford University Press UK}, file = {erae2023.pdf}, slide = {erae2023_slide.pdf}, doi = {https://doi.org/10.1093/erae/jbac018}, month = jan }
This paper assesses how bilateral distance affects within-firm-product variation in free-on-board (FOB) export prices across destinations. I estimate linear models that regress firm-product-destination-time FOB unit values on distance, firm-product-time fixed effects and destination country controls. If distance doubles, the average Swiss agri-food firm increases its FOB export price by 2.3 per cent. However, the positive distance elasticity of export prices reflects product quality differences and/or variable markups. I disentangle both mechanisms and show that, for a given product quality, exporting firms charge higher markups in distant markets. Nevertheless, this form of price discrimination is less pronounced for higher-quality products.
@article{fiankor2021trade, title = {Trade, price and quality upgrading effects of agri-food standards}, author = {Fiankor, Dela-Dem Doe and Curzi, Daniele and Olper, Alessandro}, journal = {European Review of Agricultural Economics}, volume = {48}, number = {4}, pages = {835--877}, year = {2021}, publisher = {Oxford University Press UK}, file = {erae2021.pdf}, slide = {erae2021_slide.pdf}, policybrief = {erae2021_policybrief.pdf}, doi = {https://doi.org/10.1093/erae/jbaa026} }
This paper assesses how cross-country differences in public mandatory food standards affect trade, prices and product quality upgrading in the agri-food sector. We estimate different gravity-type models that exploit the bilateral difference in maximum residue limits (MRLs) over the period from 2005 to 2014 for 145 products across 59 countries. Our findings show that cross-country differences in MRLs restrict trade. However, conditional on trading, they increase product prices—even when we adjust prices for quality—with null effects on estimated product quality. These effects are pronounced for South–North trade but not for exports to the South.
@article{djimgou2021trade, title = {Trade costs and demand-enhancing effects of agrifood standards: Consequences for Sub-Saharan Africa}, author = {Tchakounte, Aristide Djimgou and Fiankor, Dela-Dem Doe}, journal = {Journal of African Trade}, volume = {8}, number = {1}, pages = {51--64}, year = {2021}, publisher = {Paris: Atlantis Press}, doi = {10.2991/jat.k.210907.001}, file = {jaft2021.pdf} }
Agrifood standards impede trade by increasing compliance costs, but they can also enhance trade by signalling quality. This paper disentangles the trade costs and demand-enhancing effects of two important standards-technical barriers to trade, and sanitary and phytosanitary measures-on (i) global agricultural trade flows and (ii) fruit, nut, and vegetable trade between sub-Saharan Africa and high-income OECD countries. Combining estimates fromunit value and trade value regressions set within structural gravity frameworks, we show that trading standards increase trade costs-which exporters pass on to consumers in the form of higher prices-but they also increase trade volume. For agrifood exports from sub-Saharan Africa, compliance with standards guarantees market access at higher prices to high-value OECD markets.
@article{fiankor2021heterogeneous, title = {The heterogeneous effects of standards on agricultural trade flows}, author = {Fiankor, Dela-Dem Doe and Haase, Oliver-Ken and Br{\"u}mmer, Bernhard}, journal = {Journal of Agricultural Economics}, volume = {72}, number = {1}, pages = {25--46}, year = {2021}, publisher = {Wiley Online Library}, doi = {https://doi.org/10.1111/1477-9552.12405}, file = {jae2021.pdf}, slide = {jae2021_slide.pdf} }
This article uses a theory‐based translog gravity model to investigate the heterogeneous effects of food standards on aggregate agricultural trade. We revisit the ‘standards‐as‐barriers‐to‐trade’ debate with a distinctive twist. In contrast to existing works, we show that standards reduce trade but even more so for countries that trade smaller volumes. Our identification strategy exploits the within‐country variation in specific trade concerns. We confirm that stricter importer standards are indeed trade‐restrictive. However, the estimated trade cost elasticity varies depending on how intensively two countries trade. Specifically, it decreases in magnitude with an increasing import share of the exporter in the importing country’s total imports. The reason is simple but intuitive; bigger trading partners find it more profitable to invest in meeting the costs of importer‐specific standards. This work is novel in showing that the standards–trade debate misses out on an important heterogeneity driven by existing import shares. Liberalising non‐tariff measures will favour smaller trading partners more than well‐established ones.
@article{fiankor2020does, title = {Does GlobalGAP certification promote agrifood exports?}, author = {Fiankor, Dela-Dem Doe and Flachsbarth, Insa and Masood, Amjad and Br{\"u}mmer, Bernhard}, journal = {European Review of Agricultural Economics}, volume = {47}, number = {1}, pages = {247--272}, year = {2020}, file = {erae2020.pdf}, publisher = {Oxford University Press}, doi = {https://doi.org/10.1093/erae/jbz023} }
In global agricultural value-chains, private food standards are proliferating. Yet, their trade effects remain poorly understood. This paper assesses the effect of GlobalGAP certification on exports of apples, bananas and grapes. We estimate a structural gravity model using a global dataset of certified producers and the share of certified land area in total harvest area. While our results confirm GlobalGAP standards as catalysts to trade, we find that the trade-enhancing effect varies across products and destination markets. Furthermore, the trade effect is driven more by growth in the area of certified farms than by new certified producers.
@article{fiankor2019exports, title = {Exports and governance: the role of private voluntary agrifood standards}, author = {Fiankor, Dela-Dem Doe and Mart{\'\i}nez-Zarzoso, Inmaculada and Br{\"u}mmer, Bernhard}, journal = {Agricultural Economics}, volume = {50}, number = {3}, pages = {341--352}, year = {2019}, file = {ae2019.pdf}, slide = {ae2019_slide.pdf}, data_file = {Data_agecon.zip}, publisher = {Wiley Online Library}, doi = {https://doi.org/10.1111/agec.12488} }
The empirical evidence that institutional differences across countries affect bilateral trade is robust. The crucial question remains how countries can enhance trade amid these differences. In this article, we measure the degree to which governance and institutions differ between countries as “governance distance.” Using a sample of EU/EFTA imports, we examine how adopting private agrifood safety standards modify the effect of governance distance on exports of fruits and vegetables, in particular apples, bananas, and grapes, within a structural gravity framework. Our results show that while increasing governance distance hinders bilateral trade, the interaction of standards and the governance distance is positively associated with exports, hence partially offsetting the direct trade‐inhibiting effects of the latter. GlobalGAP certified countries see the trade‐inhibiting effects of governance distance on their exports reduced by about 50%, ceteris paribus.
@inproceedings{fiankor2023agrj, title = {Estimating ad valorem equivalents of non-tariff measures in Swiss agriculture}, author = {Fiankor, Dela-Dem Doe}, journal = {Agroscope Science}, volume = {156}, pages = {1-35}, year = {2023}, publisher = {Agroscope}, file = {agroscope_science.pdf}, doi = {https://doi.org/10.34776/as156e} }
In Switzerland, non-tariff trade measures (NTMs) are playing an ever-increasing role in regulating agricultural imports. This report converts the trade effects of some of these NTMs into ad valorem tariff equivalents (AVEs). The empirical analysis is based on a combination of Swiss import data on agricultural products and NTMs introduced between 2004 and 2018 that target the agricultural sector. We conceptualize AVEs as the proportional increase in the import price of a product to which an NTM is applied and empirically estimate the AVEs using panel data models. Our main findings are two-fold. First, our baseline model estimations show that, across all agricultural products, Swiss NTMs are associated with an increase in import volumes but do not affect import prices. Hence, in aggregate the market-creating effects induced by Swiss NTMs appear to outweigh their associated costs of doing business. However, aggregate estimates can obscure important heterogeneities. Thus, in a second step, we use product-level linear regressions to estimate the AVEs of Swiss NTMs at the HS6 digit level. The sample median values of our estimated product-specific AVEs imply that, ceteris paribus, a one- unit increase in the number of SPS and TBT measures is associated with an increase in import prices by 11% and 35%, respectively. We also augment the AVEs with findings from product-level gravity models to offer qualitative evidence on the trade-creating or trade-disrupting effects of NTMs. For some agricultural products, Swiss SPS and TBT measures increase import quantities even if the NTMs lead to high AVEs.
Dela-Dem Doe Fiankor
Jun.-Professor
Chair of Food Economics and Policy
University of Goettingen, Germany.
Department of Agricultural Economics and Rural Development
Platz der Göttinger Sieben 5
D-37073 Göttingen, Germany
© 2024 Dela-Dem Doe Fiankor