The Effects of Food Safety Standards on Trade and Welfare: The Case of EU Shrimp Imports

摘要: OF DISSERTATION THE EFFECTS FOOD SAFETY STANDARDS ON TRADE AND WELFARE: CASE EU SHRIMP IMPORTS This research explores the link between a gravity model and welfare frameworks then applies quantitative system to analyze how trade is affected by Minimum Required Performance Limits (MRPL) in shrimp importing market of European Union. The consists two parts: first, this study uses “phi-ness” investigate effects MRPL on market. “phiness” partitions standard variables avoid biased estimation caused correlation time country fixed policy variables. Poisson Pseudo Maximum Likelihood (PPML) method incorporated into order control for zero valued observations. Second, based theoretic foundation model, sets up specific nested Constant Elasticity Substitution (CES) consumers’ utility further linkage these models. CES incorporates confidence domestic food as well foreign imported from developed developing countries. empirical results confirm consistent fact with previous studies: stricter has significant negative integration trading partners lower level safety standards. analysis shows that tolerance would dramatically enhance demand shrimps countries but reduce quantity supplied It also indicated increased lead an increase consumers, suppliers countries, total international trade, decrease indicate combination GM Welfare Approach can be applied other standards or industries.