Abstract
In our study, we tried to collect empirical studies focusing on the economic impact of Geographical Indications (GIs). Using a systematic literature review approach, we investigated three different aspects: market size, price premium and impacts on rural development. Based on the findings of studies both from the grey and academic literature, the results are quite mixed. Though the number of GI-related empirical studies has risen in recent years, there is a lack of economic data to support policies related to GIs, even in the European Union (EU), where the most important GI system exists. Overall, it is impossible to draw any general conclusions about the economic impact of GIs. Some countries have remarkable GI market size, and some GI products have a determinative role in both domestic and export markets; however, it is not general. Again, some particular GI products of some regions could gain significant price premiums, but due to the associated higher production costs and unequal distribution in the value chain, it might not result in higher producer incomes. The most conflicting empirical results were found in how GIs can contribute to regional prosperity, as evidences of the harmful effects of GIs on rural development were also identified.
Highlights
Geographical Indications (GIs) were introduced into international trade treaties by the European Union (EU) during the Uruguay Round trade negotiations
Undertaken for the European Commission (EC), this report highlighted “the lack of comprehensive data on the number of Protected Designations of Origin (PDOs) and Protected Geographical Indications (PGIs) producers, the size of the agricultural land devoted to PDO/PGI production, the value and volume of production and the value of sales” and noted that this was “a serious constraint to the monitoring and evaluation of the scheme at national and EU level” ([25], p. 254)
The authors of the London Economics report suggest that the number of registered GI products can describe market size
Summary
Geographical Indications (GIs) were introduced into international trade treaties by the European Union (EU) during the Uruguay Round trade negotiations. Within the EU, the GI program is managed by the Directorate-General, Agriculture and Regional Development. Our particular focus in this study is on the size of the market for GI products, the extent to which they contribute to increased net producer income and the extent to which they contribute to regional development. There are, many other important questions about how GIs operate, for example what price premiums consumers are willing to pay, but these are beyond the scope of this particular study Even in the European Union, the recognition of GI labels is low and other quality attributes of food products (brand in particular) might have a greater influence on purchasing decision, the role of GIs on WTP for quality food product is not clear)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
