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dc.titleFriends or Foes? The Impact of Voluntary Sustainability Standards on Agricultural Exports of Developing Countries
dc.contributor.authorDolabella, Marcelo
dc.contributor.authorSaeteros, Mario
dc.contributor.orgunitProductivity, Trade and Innovation Sector
dc.contributor.orgunitTrade and Investment Division
dc.coverageLatin America and the Caribbean
dc.date.available2024-10-21T00:10:00
dc.date.issue2024-10-21T00:10:00
dc.description.abstractPrivate actors have been actively working on standards that certify products and their production processes to minimize negative externalities. The number of Voluntary Sustainability Standards (VSS) has been increasing over the last few decades, raising interest in understanding their impact on trade flows. Standards governing the production of agricultural commodities are especially crucial for developing countries as these goods often constitute a significant portion of their exports. Using a structural gravity model, we investigate how VSS certification affects exports for developing countries across eight highly traded commodities, and twelve VSS certification schemes from 2013 to 2021. Our analysis highlights how these effects differ for Latin America and the Caribbean compared to the rest of the world. The results indicate a positive and significant effect of VSS certification on exports, with on average a one percent increase in VSS coverage, resulting in a 1.86% increase in export value. We observed positive and significant impacts on bananas, palm oil, tea, and cotton exports. Our findings also suggest that trade gains are larger for lower-income exporters trading with high-income destinations, suggesting an important role of VSS in reducing information asymmetries. Also, we observe that the proliferation of standards might reduce the positive effects associated with VSS adoption for the main agricultural producers.
dc.format.extent55
dc.identifier.doihttp://dx.doi.org/10.18235/0013030
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Friends-or-Foes-The-Impact-of-Voluntary-Sustainability-Standards-on-Agricultural-Exports-of-Developing-Countries-.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectSustainability
dc.subjectEmerging Market
dc.subjectAgricultural Trade
dc.subjectIntegration and Trade
dc.subjectExport
dc.subjectCommodity Price
dc.subjectExport Activity
dc.subjectPlant Product Industry
dc.subjectPetroleum
dc.subjectIncome Distribution
dc.subjectTrade Negotiation
dc.subject.jelcodeF18 - Trade and Environment
dc.subject.jelcodeQ17 - Agriculture in International Trade
dc.subject.jelcodeQ18 - Agricultural Policy • Food Policy
dc.subject.jelcodeQ56 - Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth
dc.subject.keywordsVoluntary sustainability standards;Private standards;International trade;developing countries
idb.identifier.pubnumberIDB-WP-01597
idb.operationRG-K1077
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