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Choosing the best model in the presence of zero trade: A fish product analysis

Publication ,  Journal Article
Tran, N; Wilson, N; Hite, D
Published in: Frontiers of Economics and Globalization
January 1, 2013

The purpose of the chapter is to test the hypothesis that food safety (chemical) standards act as barriers to international seafood imports. We use zero-accounting gravity models to test the hypothesis that food safety (chemical) standards act as barriers to international seafood imports. The chemical standards on which we focus include chloramphenicol required performance limit, oxytetracycline maximum residue limit, fluoro-quinolones maximum residue limit, and dichlorodiphenyltrichloroethane (DDT) pesticide residue limit. The study focuses on the three most important seafood markets: the European Union's 15 members, Japan, and North America. Our empirical results confirm the hypothesis and are robust to the OLS as well as alternative zero-accounting gravity models such as the Heckman estimation and the Poisson family regressions. For the choice of the best model specification to account for zero trade and heteroskedastic issues, it is inconclusive to base on formal statistical tests; however, the Heckman sample selection and zero-inflated negative binomial (ZINB) models provide the most reliable parameter estimates based on the statistical tests, magnitude of coefficients, economic implications, and the literature findings. Our findings suggest that continually tightening of seafood safety standards has had a negative impact on exporting countries. Increasing the stringency of regulations by reducing analytical limits or maximum residue limits in seafood in developed countries has negative impacts on their bilateral seafood imports. The chapter furthers the literature on food safety standards on international trade. We show competing gravity model specifications and provide additional evidence that no one gravity model is superior. © 2013 by Emerald Group Publishing Limited. All rights reserved.

Duke Scholars

Published In

Frontiers of Economics and Globalization

DOI

ISSN

1574-8715

Publication Date

January 1, 2013

Volume

12

Start / End Page

127 / 148
 

Citation

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Tran, N., Wilson, N., & Hite, D. (2013). Choosing the best model in the presence of zero trade: A fish product analysis. Frontiers of Economics and Globalization, 12, 127–148. https://doi.org/10.1108/S1574-8715(2013)0000012010
Tran, N., N. Wilson, and D. Hite. “Choosing the best model in the presence of zero trade: A fish product analysis.” Frontiers of Economics and Globalization 12 (January 1, 2013): 127–48. https://doi.org/10.1108/S1574-8715(2013)0000012010.
Tran N, Wilson N, Hite D. Choosing the best model in the presence of zero trade: A fish product analysis. Frontiers of Economics and Globalization. 2013 Jan 1;12:127–48.
Tran, N., et al. “Choosing the best model in the presence of zero trade: A fish product analysis.” Frontiers of Economics and Globalization, vol. 12, Jan. 2013, pp. 127–48. Scopus, doi:10.1108/S1574-8715(2013)0000012010.
Tran N, Wilson N, Hite D. Choosing the best model in the presence of zero trade: A fish product analysis. Frontiers of Economics and Globalization. 2013 Jan 1;12:127–148.
Journal cover image

Published In

Frontiers of Economics and Globalization

DOI

ISSN

1574-8715

Publication Date

January 1, 2013

Volume

12

Start / End Page

127 / 148