首页|Analysis on the Impact of Sanitary and Phytosanitary Measures on Vietnam’s Rice Exports Using a Gravity Model
Analysis on the Impact of Sanitary and Phytosanitary Measures on Vietnam’s Rice Exports Using a Gravity Model
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Nowadays people attach the importance of human health to food safety and hygiene.Therefore measures to ensure food hygiene and safety are increasingly concerned and applied strictly.This can make contribution to improving the qualitystandardof human life,but it can alsobe applied as non-barrier trade measures.Thus,The Agreement on the Application of Sanitary and Phytosanitary Measures(the"SPS Agreement")which entered into force with the establishment of the World Trade Organization(WTO)on1January1995is necessary todiminishtheutilizeof unjustified sanitary and phytosanitary measureswith the aimof trade protection.Vietnam has been a WTO member since2007.Therefore,the SPS Agreement and SPS measures which are applied by members have great impacts on Vietnam’s export.This paper used gravity model toexaminehowSPS measures exert influence onrice being exported from Vietnam.The gravity model is at the same time,a econometric model,and a useful tool in explaining the quantity and the direction of the bilateral trade between nations and it is widely used in international trade.Being developed by Timbergen(1962)and Poyhonen(1963),the gravity modelwas first used in international trading by to estimate the export values between two countries.In this research,the author used the gravity model to analyze the factors that affect the rice export value of Vietnam towards25importing nations during the period of2007-2017.The study especially focused on the impact of food safetystandards,in particular,SPS measures that importing nations applied on rice imported from Vietnam.By using different estimation methods and tests to choose the mostcompatiblemodel,the study found out that factors such as GDP,population,geographical distances,import tax,quantity,and the size of cultivated land,all have clear impact on Vietnam’s rice export value.Besides,through the result of estimation,the main variable of the model,which represents the factors related to food safety regulations–SPS measures that importing nations applied,has aundesirableeffecton the dependent variable.In particular,with the same level of income,nations that applied SPS measures will have lower Vietnamese rice import value than nations that do not apply the measures.However,the negative effect has the tendency to be minimized when the GDP of importing nations rises.Through the result of the estimation,the author analyzed and suggested some solutions toboostthe Vietnamese rice export value.One of the most practical solutions is toenhancethe quality of the ricewith the aim ofmatchingwith the ever-increasing food safety regulations.For this solution to become real,the connection between farmers,procurement companies,exporting companies,the government and the scientists.Besides,from the viewpoint of macroeconomics,the government should promote the negotiations of Free Trade Agreements(FTAs),which will open up new potential markets for exporting Vietnamese rice.
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