measurement of the impacts of the technical barriers to trade on vegetable export of china_ an empirical study based on the gravity model

1、20 Copyright © Canadian Research accepted 14 October, 2013.Abstract With the residue limits of pesticides in vegetables as the indication, the present paper employs the gravity model to measure the impacts of the

2、 technical barriers to trade on vegetable export of China. The analysis shows that the residue limits of the pesticides in vegetables set by Japan, US and EU have apparent negative impacts on the vegetable export of

3、China. The vegetable export of China decreases by 4.16% with the rise in the strictness of residue limits by 10%. On the other hand, to raise the strictness in residue limits of pesticides in vegetables in China has

4、some positive impacts on the vegetable export of China. The reversed transmission of the affirmative list policy of Japan, despite its apparent short-term repressive impacts on the vegetable export of China, has posi

5、tive impacts on the vegetable export of China as a whole to the US, European and Japanese markets. Key words: The technical barriers to trade; The gravity model; The vegetable exportJIANG Ling (2013). Measurement of the

6、 Impacts of the Technical Barriers to Trade on Vegetable Export of China: An Empirical Study Based on the Gravity Model. International Business and Management, 7(2), 20-25. Available from: http://www.cscanada. net/ind

7、ex.php/ibm/article/view/j.ibm.1923842820130702.1055 DOI: http://dx.doi.org/10.3968/j.ibm.1923842820130702.1055INTRODUCTIONWith the development of economic globalization, and on the condition of WTO’s strictly limiting

8、tariffs and quotas, anti-dumping, countervailing and other traditional non- tariff measures, to protect human and animal and plant health and environmental resources, technical barriers to trade (TBT) 1, because of it

9、s characteristics such as strong pertinence, good concealment, flexibility, are increasingly become the main policy tools and means in the world especially in the developed countries to make the trade protection, whi

10、ch has a far-reaching influence on international trade. In recent years, affected by various factors, China’s export of agricultural products has become one of the most serious industries being limited by technical b

11、arriers to trade. TBT has caused great negative effect to China’s agricultural product export and domestic agricultural production. China is the world’s main vegetable production and export country. In recent years it

12、s rapid export growth has become the second major categories of products. The main markets of China’s vegetable export are Japan, the United States, Europe and other developed countries and regions, which set higher

13、levels of technical barriers to trade, so vegetable products also encounter more serious technical barriers to trade. According to the examples and data, in recent years, China’s vegetable products are 1 TBT in this p

14、aper stands for Technical Barriers to TradeMeasurement of the Impacts of the Technical Barriers to Trade on Vegetable Export of China: An Empirical Study Based on the Gravity Model22 Copyright © Canadian Research

15、& Development Center of Sciences and Culturesthe influencing factors of the gravity model for China’s vegetable export. In addition, XU Haiqing (2008), DONG Yinguo (2011), ZHONG Zijian (2010), ZHAI Yinli (2011) an

16、d other researchers used the gravity model to make a quantitative analysis on the influence of technical barriers to trade on China’s export of agricultural products. According to the content of the research, and cons

17、idering the availability of the data, this paper applies the gravity model method to the research.2. THE CONTRUCTION OF THE MODEL AND THE DATA SOURCES 2.1 The Construction of the ModelTo measure the effects of TBT on

18、 China’s vegetable export, we have constructed gravity model 1 to measure the impact of vegetable pesticide residue limits standard on trade, and plan to make an empirical analysis by using the panel data from China’s

19、 vegetable export to Japan, the United States and the European Union during the sixteen years from1995 to 2010. The form of Model 1 is specified as type (5):0 1 2 ln M lnlnlnlnlnln ijt it jt a a G a G a D a S a S U =

20、+ + + + + +3 4 5 ln M lnlnlnlnlnln ij ij it ij a a G a G a D a S a S U = + + + + + +(5)Where, Mijt is the vegetable trade volume of China’s export to country j during the t period. About the meaning of the explanatory

21、 variables, the theoretical prediction effect of the dependent variables (the expected symbols) and their descriptions are shown as in Table 1.Table 1 The Meaning of the Explanatory Variables, the Expected Symbols and

22、Their DescriptionsExplanatory variables Meaning Expected symbol DescriptionGit Exporting country’s per capita GNP + Comprehensive reflection of the exporting country's economic development level and population sta

23、tus, and the potential supply ability of the country.Gjt Importing country's per capita GNP + Comprehensive reflection of the importing country's economic development level, population status, and the potentia

24、l demand ability of the country.Dij The absolute distance between the capitals of the importing and exporting countries -The geographical distance influences the transportation costs, and also indirectly influences the

25、 trade costs because of the differences in the country’s trade policy, customs and habits, and consumer’s preferences.Sit The number of vegetable pesticide residue limits standard implemented in the exporting country

26、 + The higher standards of the export country can enhance product quality, enhance the sharing standard level, and promote trade.Sjt The number of vegetable pesticide residue limits standard implemented in the import

27、ing country - The higher standards of the importing country will increase commodity production and export costs, also create obstacles to trade.All the time, Japan is the biggest market of China’s vegetable export, bu

28、t also the most stringent country setting technical barriers to trade for China’s vegetables, especially the affirmative list policy carried out since 2006 has made China’s vegetable export to Japan in a more severe

29、situation. Some studies have revealed that the affirmative list policy has caused in a short period of time great negative impact on China’s vegetable export to Japan, but the research on this policy’s influences on t

30、he overall situation of China’s vegetable export in a relatively long period is short. In order to reflect the whole effects of the affirmative list policy on China’s vegetable export, we add dummy variables to it on

31、 the basis on of Model 1, so we have Model 2 shown as type (6):0 1 2 3 ln M lnlnlnlnlnln ijt it jt ij a a G a G a D a S a S a R U = + + + + + + +4 5 6 ln M lnlnlnlnlnln ij it ij a a G a G a D a S a S a R U = + + + + +

32、 + +(6)In which R is the dummy variables of the affirmative list, its value being 1 since 2006, and its estimated coefficient beingncertainty, and the rest of the explanatory variables being shown as before.2.2 The D

33、ata SourcesIn Model 2, Mijt is the vegetable trade of China’s exports to country j in t period. The data come from the “China Foreign Economic Statistical Yearbook”, in which each year all data from Chapter 7, 8 and 2

34、0 are accounted according to the customs imports and exports classification. Per capita GNP in China, Japan, the United States and the European Union are from the official website of the Statistical Bureau of People’

35、s Republic of China www.stats.sor.cn/tjsj/qtsj/gisi and “The World Economy Yearbook 2010-2011”. Considering the availability of data, German’s data stand for the data of EU as the German economy is the largest and mo