The Impact of EU Pesticide Residue standards on African Fresh Produce Exports to the UK

This paper estimates the impacts of pesticide maximum residue level (MRL) standards imposed by the European Union (EU) on trade-flows from African exporting countries to the United Kingdom (UK) using a fixed-effects gravity model specification with corrections for the zero trade-flows. We employ the Poison Pseudo Maximum Likelihood (PPML) estimation method to estimate the gravity model. Most variables have the expected signs and were statistically significant, consistent with the trade literature. The volume of trade increases with the GDP of the exporting countries and the UK. The volume of trade decreases with geographical distance. The variables describing cultural and economic proximity of countries, such as colonial relationships positively affect the volume of trade. Regarding the impact of MLRs on trade flows, the results were not completely consistent between the product groups. However, some commodities do exhibit sensitivity to changes in pesticide MRL standards imposed by the EU and hence applied in the UK.

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Conference Paper/ Presentation
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JEL Codes:
Q18; F18

 Record created 2018-08-17, last modified 2020-10-28

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