Reputation matters: Spillover effects for developing countries in the enforcement of US food safety measures

Abstract

We use data on US food import refusals to show for the first time that reputational spillovers are important factors in the enforcement of food safety measures. The odds of a country experiencing at least one import refusal increase by over 100% if there was a refusal of the same product from a neighboring country in the preceding year. Similarly, the odds of a refusal increase by 62% if there was a refusal of a related product from the same country in the preceding year. These findings have important policy implications for exporters of agricultural products, particularly in middle-income developing countries.