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International trade and endogenous standards: the case of GMO regulations

  • MAURO VIGANI (a1), VALENTINA RAIMONDI (a1) and ALESSANDRO OLPER (a2)

Abstract

This paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.

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