Influence of food safety standards on trade: Evidence from the pistachio sector

Abstract

AbstractThis paper analyses the influence of food safety standards related to aflatoxin contamination on the pistachio trade of the world's two leading pistachio producers (the United States and Iran) during the period 1996–2014. Using diverse econometric procedures, the estimation of extended gravity models shows that both countries benefit from stricter food safety standards imposed by importing countries. The results also show that US exports are not negatively affected by the distance from the importer (higher differentiation), while the impact of distance on the Iranian pistachio trade is negative. The results reveal that stricter food safety requirements are positive for both producing countries, regardless of their level of economic development, resulting in a “win–win” scenario. However, the findings also confirm that other variables, such as distance, the role of producers' associations and quality perception, should be considered. [EconLit citations: F10, F63, I18, Q17].