Food Safety Regulation and Their Impact on Azerbaijan Vegetable Oil Trade
DOI:
https://doi.org/10.57125/FEL.2023.12.25.10Keywords:
food safety regulation, export concentration, Herfindahl Hirschman Index, Republic of AzerbaijaAbstract
The research aimed to assess the impact on the overall export of the Republic of Azerbaijan of adapting existing food safety regulations, based on technical standards for vegetable oils, to international requirements such as the CODEX Alimentarius. This study employed both qualitative and quantitative methods. A systematic literature review was conducted to establish methodologies for evaluating export diversification. A regression model was also constructed to determine the relationship between the volume of exports and the degree of export concentration. After scientific works related to the research examination after analysing the data, it was determined that most scholars focused on examining the impact of regulations on the expansion of export markets and the rise in the price of exported goods rather than its effect on overall export volumes. To explore this further, the study initially investigated the contribution of vegetable oil exports to the overall export of food products in the Republic of Azerbaijan. Along with the Herfindahl Hirschman Index, which reflects the concentration level of vegetable oil exports, statistical data analysis and comparison methods were used. One of the main issues when examining data on vegetable oil export was the concentration level of vegetable oil export in the Republic of Azerbaijan. As a result of the analysis of export data for individual importing countries, it is clear that in 2022, the number of countries importing vegetable oils from the Republic of Azerbaijan has increased compared to 2019. In addition, with the help of the Herfindahl Hirschman Index, the degree of concentration of Azerbaijan's vegetable oil export was studied. It was found that although positive progress was achieved in the concentration level of the export market in the country compared to 2019, in general, the export market of vegetable oils was considered highly concentrated. In addition, although there was a negative relationship between the export amount of vegetable oils and the Herfindahl Hirschman Index, this relationship was not considered significant.
References
Akune, Y. (2023, July 23–25). Impact of non-tariff measures on agri-food trade: Quantitative and qualitative regulatory differences [Conference presentation abstract]. 2023 Agricultural & Applied Economics Association annual meeting, Washington DC. https://ageconsearch.umn.edu/record/335934/files/26880.pdf
AQTA. (2018, September 15). “KODEKS ALİMENTARİUS” Komissiyasının nümayəndə heyəti Azərbaycanda rəsmi səfərdə oldu. https://afsa.gov.az/az/xeberler/kodeks-alimentarius-komissiyasinin-numayende-heyeti-azerbaycanda-resmi-seferde-oldu114
Başyi̇ği̇t, M., & Kart, E. U. (2022). Analysis of Turkey’s base metal ore exports by Herfindahl Hirschman Concentration Index. Gazi Mühendislik Bilimleri Dergisi, 8(2), 237–246. https://doi.org/10.30855/gmbd.0705007
Beghin, J. C., & Schweizer, H. (2020). Agricultural trade costs. Applied Economic Perspectives and Policy, 43(2), 500–530. https://doi.org/10.1002/aepp.13124
Boza, S., Muñoz, J., & Cáceres, J. (2023). Does harmonization reduce the impact of SPS measures on agricultural exports? An assessment from the Chilean fruit sector. Revista De La Facultad De Ciencias Agrarias, 55(1), 75–85. https://doi.org/10.48162/rev.39.097
Cadot, O., & Gourdon, J. (2014). Assessing the price-raising effect of non-tariff measures in Africa. Journal of African Economies, 23(4), 425–463. https://doi.org/10.1093/jae/eju007
Chen, K. Z., & Mao, R. (2020). Fire lines as fault lines: increased trade barriers during the COVID-19 pandemic further shatter the global food system. Food Security, 12(4), 735–738. https://doi.org/10.1007/s12571-020-01075-2
Committee on Sanitary and Phytosanitary Measures. (2021). Annual overview – Implementation of SPS transparency provisions and specific trade concerns. World Trade Organization. https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/G/SPS/GEN804R13.pdf&Open=True
DaSilva-Glasgow, D. (2019). Transactions costs perspective of non-tariff barriers to trade: An analysis of food and agricultural exports from Guyana using survey data. The International Trade Journal, 34(3), 339–364. https://doi.org/10.1080/08853908.2019.1664354
Erkan, B., & Bozduman, T. (2021). Analysis of export concentrations of China and Japan on product basis. ASSAM Uluslararası Hakemli Dergi, 8(19), 140–146. https://dergipark.org.tr/en/pub/assam/issue/65159/996779
Gebrehiwet, Y., Ngqangweni, S., & Kirsten, J. F. (2007). Quantifying the trade effect of sanitary and phytosanitary regulations of OECD countries on South African food exports. Agrekon, 46(1), 1–17. https://doi.org/10.1080/03031853.2007.9523759
Geetha, R., Ravisankar, T., Patil, P. K., Avunje, S., Vinoth, S., Sairam, C. V., & Vijayan, K. (2020). Trends, causes, and indices of import rejections in international shrimp trade with special reference to India: A 15-year longitudinal analysis. Aquaculture International, 28(3), 1341–1369. https://doi.org/10.1007/s10499-020-00529-w
Grübler, J., & Reiter, O. (2021). Characterising non-tariff trade policy. Economic Analysis and Policy, 71, 138–163. https://doi.org/10.1016/j.eap.2021.04.007
Haini, H., Loon, P. W., & Pang, L. L. (2023). Can export diversification promote export upgrading? Evidence from an oil-dependent economy. Resources Policy, 80, Article 103292. https://doi.org/10.1016/j.resourpol.2022.103292
Hobbs, J. E., Khorana, S., & Yeung, M. T. (2023). Moving beyond least developed country status: Challenges to diversifying Bangladesh’s seafood exports. Aquaculture Economics & Management, 27(3), 498–522. https://doi.org/10.1080/13657305.2022.2162624
Hong, Y., Zhang, X., Hu, A., & Ma, P. (2020). Econometric analysis of the Israeli trade protectionism and the export comparative advantage of the primary agricultural products. Basic & Clinical Pharmacology & Toxicology, 126, 305–306.
Hunga, H., Chiwaula, L., & Katundu, M. (2023). Organizational readiness for policy implementation: An assessment of the harmonized seed regulations in Malawi. Environmental Development, 45, Article 100828. https://doi.org/10.1016/j.envdev.2023.100828
Hussain, S. S., Sela, S., & Machrouh, J. (2023). A review of non-tariff measures faced by Moroccan firms. In P. Sauve & U. Dadush (Eds.), Trade policy in morocco: Taking stock and looking ahead (pp. 259–306). Policy Center for the New South and World Bank Group.
Jongwanich, J. (2020). Export diversification, margins and economic growth at industrial level: Evidence from Thailand. The World Economy, 43(10), 2674–2722. https://doi.org/10.1111/twec.12921
Kaitila, V. (2019). Export product range and economic growth in the EU countries. The World Economy, 42(3), 711–737. https://doi.org/10.1111/twec.12715
Lee, Y. S. (2021). Regulatory Autonomy under the WTO Agreement on Sanitary and Phytosanitary Measures: Implications of Korea–Import Bans, and Testing and Certification Requirements for Radionuclides. World Trade Review, 20(3), 321–342. https://doi.org/10.1017/S147474562100001X
Mo, J. (2022). The impacts of sanitary and phytosanitary (SPS) measures on China’s tea trade: Empirical analysis based on gravity model. Scientific Journal of Economics and Management Research Volume, 4(6), 870–879. http://www.sjemr.org/download/SJEMR-4-6-870-879.pdf
Mora, J., & Olabisi, M. (2023).Economic development and export diversification: The role of trade costs. International Economics, 173, 102–118. https://doi.org/10.1016/j.inteco.2022.11.002
Nazhifah, S. A., & Faridatussalam, S. R. (2023). Diversification of Indonesian palm oil exports for the 2017–2021 period. American Journal of Sciences and Engineering Research, 6(1), 182–189. https://www.iarjournals.com/upload/61182189.pdf
Nogales, A., Mora-Cantallops, M., Morón, R. D., & García-Tejedor, Á. J. (2023). Network analysis for food safety: Quantitative and structural study of data gathered through the RASFF system in the European Union. Food Control, 145, Article 109422. https://doi.org/10.1016/j.foodcont.2022.109422
OECD, & World Trade Organization. (2019). Aid for trade at a glance 2019: Economic diversification and empowerment. Paris: OECD Publishing. https://doi.org/10.1787/18ea27d8-en
Orden, D., Cororaton, C., & Rouchdi, K. (2021). Technical regulation and agri-food trade. In J. Roosen & J. E. Hobbs (Eds.), A modern guide to food economics (pp. 62-87). Edward Elgar Publishing.
Rodríguez‐Castelán, C., López-Calva, L. F., & Barriga-Cabanillas, O. (2023). Market concentration, trade exposure, and firm productivity in developing countries: Evidence from Mexico. World Development, 165, Article 106199. https://doi.org/10.1016/j.worlddev.2023.106199
Sanjuán, A. I., Philippidis, G. P., Pérez, H. F., & De Rentería, P. G. (2023). Empirical insights on the dynamics of SPS trade costs: The role of regulatory convergence and experience in EU dairy trade. Food Policy, 119, Article 102524. https://doi.org/10.1016/j.foodpol.2023.102524
Santeramo, F. G., & Lamonaca, E. (2022). On the trade effects of bilateral SPS measures in developed and developing countries. The World Economy, 45(10), 3109–3145. https://doi.org/10.1111/twec.13256
Siswana, S., & Phiri, A. (2021). Is export diversification or export specialization responsible for economic growth in BRICS countries?. The International Trade Journal, 35(3), 243–261. https://doi.org/10.1080/08853908.2020.1842823
Thuong, N. T. T. (2018b). The effect of Sanitary and Phytosanitary measures on Vietnam’s rice exports. EconomiA, 19(2), 251–265. https://doi.org/10.1016/j.econ.2017.12.001
Tiu, C. (2021). Pesticide residues in food: A never-ending challenge. In P. Scott, R. Strange, L. Korsten, & M. L. Gullino (Eds.), Plant diseases and food security in the 21st century. Plant pathology in the 21st century, Volume 10 (pp. 251–258). Cham: Springer. https://doi.org/10.1007/978-3-030-57899-2_12
Weidner, M., & Zylkin, T. (2021). Bias and consistency in three-way gravity models. Journal of International Economics, 132, Article 103513. https://doi.org/10.1016/j.jinteco.2021.103513
Wilson, J. S., & Otsuki, T. (2003). Balancing risk reduction and benefits from trade in setting standards. International Food Policy Research Institute. https://ideas.repec.org/p/fpr/2020br/1006.html
Yadav, D., Dutta, G., & Kumar, S. (2021). Food safety standards adoption and its impact on firms’ export performance: A systematic literature review. Journal of Cleaner Production, 329, Article 129708. https://doi.org/10.1016/j.jclepro.2021.129708
Yadav, D., Dutta, G., & Saha, K. (2023). Assessing and ranking international markets based on stringency of food safety measures: Application of fuzzy AHP-TOPSIS method. British Food Journal, 125(1), 262–285. https://doi.org/10.1108/BFJ-09-2021-1054
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 author
This work is licensed under a Creative Commons Attribution 4.0 International License.
