Impact of European Food Safety Border Inspections on Agri-Food Exports: Evidence from Chinese Firms

36 Pages Posted: 27 Apr 2016

See all articles by Matthias Beestermöller

Matthias Beestermöller

Ludwig Maximilian University of Munich (LMU)

Anne-Célia Disdier

Paris School of Economics (PSE)

Lionel Gérard Fontagné

Banque de France; CEPII; University of Paris 1 Panthéon Sorbonne; Paris School of Economics

Date Written: April 6, 2016

Abstract

The cost of complying with a sanitary standard is certain. However, such regulatory measure is a source of uncertainty for exporting firms in relation to border rejections. Shipments may fail to pass inspections and may be refused entry into the importing country. We examine how the risk of rejection at European borders is affecting Chinese agri-food exporters. We combine information on rejections with Chinese firm-level export data. Border rejections amplify the turnover among firms at the extensive margin of trade. This risk is curbing small exporters and resulting in a concentration of Chinese exports from big and more productive exporters.

Keywords: food safety, border inspections, import refusals, uncertainty, firm heterogeneity

JEL Classification: F140, L250, Q170, Q180

Suggested Citation

Beestermöller, Matthias and Disdier, Anne-Célia and Fontagné, Lionel, Impact of European Food Safety Border Inspections on Agri-Food Exports: Evidence from Chinese Firms (April 6, 2016). CESifo Working Paper Series No. 5840, Available at SSRN: https://ssrn.com/abstract=2770419 or http://dx.doi.org/10.2139/ssrn.2770419

Matthias Beestermöller

Ludwig Maximilian University of Munich (LMU) ( email )

Geschwister-Scholl-Platz 1
Munich, DE Bavaria 80539
Germany

Anne-Célia Disdier (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Lionel Fontagné

Banque de France ( email )

Paris
France

HOME PAGE: http://www.lionel-fontagne.eu/

CEPII ( email )

9 Rue Georges Pitard
Paris, 75015
France
+33 1 53 68 55 06 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

Paris School of Economics ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France
+33 1 44 07 89 94 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

University of Paris 1 Panthéon Sorbonne ( email )

Maison des Sciences Economiques
106-112 Bd de l'Hôpital
Paris, 75013
France
+33 1 44 07 89 94 (Phone)
+33 1 53 68 55 01 (Fax)

HOME PAGE: http://lionelfontagne.weebly.com/

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