Assessment of Impact of Food-Safety Measures on Exports: A Gravity and CGE Analysis Focusing on India

  • Pratima Pandey
  • Badri Narayanan


This chapter analyzes the impact of food safety measures on Indian exports using the gravity and computable general equilibrium models. Sanitary and phytosanitary (SPS) measures are not subject to negotiation or removal (like other nontariff measures) due to their welfare aim, and hence are here to stay. Hence, it becomes important to identify the impact of SPS measures on trade flows. This chapter tries to answer the question of whether or not high standards imposed by the importer act as a barrier to exports. Empirical studies have been divided on this issue. Some studies have found a positive impact of SPS measures on trade and some have not.


  1. Anderson, J. E. (1979). A theoretical foundation for the gravity equation. The American Economic Review, 69(1), 106–116.Google Scholar
  2. APEDA. (2006). APEDA website. Retrieved March 2006, from
  3. Bergstrand, J. (1989). The generalised gravity equation, monopolistic competition, and the factor proportion theory in international trade. Review of Economics and Statistics, 71(1), 143–153.CrossRefGoogle Scholar
  4. Greene, W. H. (2002). Econometric analysis. Englewood Cliffs: Prentice Hall.Google Scholar
  5. Greenway, D. (1987). The new theories of intra-industry trade. Bulletin of Economic Research, 39(2), 95–120.CrossRefGoogle Scholar
  6. Henson, S., & Mitullah, W. (2004). Kenyan exports of Nile perch – Impact of food safety standards on export oriented supply chain. Policy research working paper, World Bank.Google Scholar
  7. Hertel, T. W. (Ed.). (1997). Global trade analysis: Modeling and applications. New York: Cambridge University Press.Google Scholar
  8. Iacovone, L. (2003). Analysis and impact of sanitary and phyto-sanitary measures. Centre for International Development at Harvard University. India in the WTO (2008, May) Retrieved from
  9. Jensen, M. F. (2002). Reviewing the SPS agreement: A developing country perspective. CDR working paper. Sub-serieson globalisation and economic restructuring in Africa, Copenhagen.Google Scholar
  10. Link, A. (1983). Market structure and voluntary product standards. Applied Economics, 15, 393–401.CrossRefGoogle Scholar
  11. Moenius, J. (1999). Information vs product adaptation: The role of standards in trade. Chicago, USA: North Western University, Kellogg Graduate School of Management.Google Scholar
  12. Narayanan, G. B., Aguiar, A., & McDougall, R. (Eds.) (2015). Global trade, assistance, and production: The GTAP 9 data base. West Lafayette: Center for Global Trade Analysis, Purdue University.Google Scholar
  13. Otsuki, T., Wilson, J. S., & Sewadeh, M. (2001). A race to the top – A case study of food safety standards an African exports. Policy research working paper no. 2563, World Bank.Google Scholar
  14. Rahman, M. (2003). A panel data analysis of Bangladesh’s trade: The gravity model approach. A PhD thesis, University of Sydney, Sydney.Google Scholar
  15. RBI. (2006). Retrieved March 2006, from
  16. Swann, P., Temple, P., & Shurmer, M. (1996). Standards and trade performance- the UK experience. Economic Journal, 106(438), 1297–1313.CrossRefGoogle Scholar
  17. White, H. (1980). A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica, 48(4), 817–838.CrossRefGoogle Scholar
  18. Wilson, J., & Otsuki, T. (2001). Global trade and food safety: Winners and losers in a fragmented system. Social Science Research Network. Retrieved October 26, 2008, from

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Pratima Pandey
    • 1
  • Badri Narayanan
    • 2
  1. 1.Cactus CommunicationsMumbaiIndia
  2. 2.University of WashingtonSeattleUSA

Personalised recommendations