European Review of Agricultural Economics Advance Access originally published online on August 17, 2006
European Review of Agricultural Economics 2006 33(3):337-360; doi:10.1093/eurrag/jbl015
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Harmonisation of food regulations and trade in the Single Market: evidence from disaggregated data
Université catholique de Louvain, Belgium
Department of Econometrics & OR, Tilburg University, Tilburg, The Netherlands
Corresponding author: Mark Vancauteren, Department of Econometrics & OR, Tilburg University, P.O. Box 90153, NL-5000 LE Tilburg, The Netherlands. Telephone:+31 13 466 3151. Fax: +31 13 466 3280. E-mail: m.vancauteren{at}uvt.nl
Received September 2004; Revision received May 2006. A structural gravity model is used to quantify the effect of harmonisation of EU food regulations on intra-EU trade during 19902001. We construct a database that identifies food products covered by harmonised regulations at a very detailed level. We find, at different levels of aggregation, that harmonisation of food regulations has led to more intra-EU trade, and that the tariff equivalents of the cost of not harmonising food regulations, subject to the sub-sector elasticity of substitution, vary significantly across some food sub-sectors.
Keywords: gravity, food regulations, technical barriers to trade, tariff equivalence, European trade
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