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European Review of Agricultural Economics Advance Access published online on August 17, 2006

European Review of Agricultural Economics, doi:10.1093/eurrag/jbl015
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2006; all rights reserved

Article

Harmonisation of food regulations and trade in the Single Market: evidence from disaggregated data

Bruno Henry de Frahan 1 and Mark Vancauteren 2 *

1 Université catholique de Louvain, Belgium
2 Department of Econometrics & OR, Tilburg University, P.O. Box 90153, NL-5000 LE Tilburg, The Netherlands

* To whom correspondence should be addressed.
Mark Vancauteren, E-mail: m.vancauteren{at}uvt.nl


   Abstract

A structural gravity model is used to quantify the effect of harmonisation of EU food regulations on intra-EU trade during 1990-2001. 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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