Alessandro Olper

Constitutional rules and agricultural policy outcomes.

This paper deals with the effect of constitutional rules on agricultural policy outcomes in a panel of observations for more than 70 developing and developed countries in the 1955-2005 period. Testable hypotheses are drawn from recent developments in the comparative politics literature that see political institutions as key elements in shaping public policies. Using differences-in-differences regressions we find a positive effect of a transition into democracy on agricultural protection. However, this average effect masks substantial heterogeneities across different forms of democracy. Indeed, what matters are transitions to proportional democracies, as well as to permanent democracies. Moreover, while the author does not detect significant differences across alternative forms of government (presidential versus parliamentary systems), there is some evidence that the effect of proportional election is exacerbated under parliamentary regimes, and diminished under presidential ones.

International trade and endogenous standards: the case of GMO regulations

This paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.

GMO Regulations, International Trade and the Imperialism of Standards

This paper deals with the quantification of GMO regulations on bilateral trade flows. A composite index of the ‘complexity’ of such regulations for sixty countries as well as an ‘objective’ score for six GMO regulatory sub-dimensions has been developed. Using a gravity model, we show how bilateral ‘similarity’ in GMO regulations, affect trade flows for the composite index and its components. Results show that bilateral distance in GMO regulations negatively affect trade flows, especially as an effect of labeling policies, approval process and traceability systems. Interesting, the trade reduction effect induced by GMO standards increase by a factor of four when GMO regulations is treated as endogenous to trade flows. This pattern is consistent with an international environment where large importing countries ‘dictate’ the rules of the game to developing countries.

Electoral Rules, Forms of Government and Redistributive Policy: Evidence from Agriculture and Food Policies

We investigate the effect of electoral rules and forms of government on public policy outcomes using a new dataset on agriculture and food policies from 74 countries over the 1960-2005 period. Using both cross-sectional and panel data analyses we find robust evidence that the specific nature of democratic institutions has important consequences for public policy. Proportional democracies and presidential democracies – compared to majoritarian and parliamentary democracies – give more public support to agriculture and less to food consumers. The magnitude of these constitutional effects are stronger for import-competitive sectors and staple food crops. The effects seem independent from the ideology orientation of governments.

Impact of the WTO on Agricultural and Food Policies

Most studies on the impact of WTO agreements on policies are ex ante simulations or focus on trade effects. We estimate ex post the impact of the WTO on agricultural policies, including both the total transfers by the policies and the policy instruments used, in particular their market distortions. We use OECD data on total support and instrument choice in agricultural policy. Our empirical analysis provides evidence that the WTO did not cause a significant reduction in the total amount of support to agriculture but that it caused a significant shift from distortionary to less distortionary instruments.

Market Access Asymmetry in Food Trade

Using a bilateral trade equation derived from a monopolistic competition model, we investigate market access reciprocity in food trade among the United States, Canada, the European Union and Japan. We explore country- and industry-specific market access asymmetry through a border effect approach. Our findings reveal marked asymmetries in reciprocal border effects, both across countries and industries. Trade policy measures, particularly non-tariff barriers (NTBs), the degree of product differentiation and a ‘home bias’ in preferences, are important factors in explaining levels in border effects. Asymmetries in border effects are mainly explained by trade policies.

GM- free private standards, public regulation of GM products and mass media

This paper provides evidence on private standards on genetically modified (GM) organisms for 44 retailers operating in 54 countries, distinguishing between retailers not using GM ingredients, and retailers using ingredients which are potentially GM in private label products. Using this information, we empirically investigate the drivers that induce retailers to adopting a GM-free private standard. The results show that many of the drivers highlighted in the literature, such as historical factors, communication infrastructure and sectoral conditions affect the likelihood of adopting a private standard. Moreover, we tested additional hypotheses from the political economy of standard formation and of mass media. Key results show that a higher share of public media reduces the probability of adopting GM-free private standards, while a higher heterogeneity in the GMO public standards increase this probability.

Political Reforms and Public Policies: Evidence from Agricultural Protection

This paper studies the effect of political regime transitions on public policy using a dataset on global agricultural distortions over 50 years (including data from 74 developing and developed countries over the period 1955-2005). We employ both difference-in-differences regressions and semi-parametric matching methods, exploiting the time series and cross-sectional variation in the data. Our semi-parametric estimates show that parametric methods might underestimate the effect of democracy on public policy. In addition, we find that the effect is asymmetric: agricultural protection increases after a country’s transition to democracy of about 9% points, but there is no effect when the political regime shifts from democracy to autocracy. Overall, the evidence supports the redistributive nature of democratic institutions toward the majority and, therefore, it is consistent with the median voter model of political behaviour.

Trade collapse, quality and food exports

This article revisits the so-called ‘Collapse in Quality’ hypothesis, according to which, during the 2008–2009 crisis, higher quality goods experienced a stronger export reduction compared to low-quality ones. Using disaggregated trade data from three European countries that traditionally export high-quality food products – France, Italy and Spain – we do not find any econometric evidence supporting this hypothesis. In contrast, we provide preliminary evidence for the concurrent hypothesis, namely that firms reduced their markup to preserve market share.

Imported Intermediate Inputs and Firms’ Productivity Growth: Evidence from the Food Industry

Imported goods play a central role in determining the gains from trade. Using detailed trade and firm-level data for Italy and France, we investigate the relationship between trade integration, imported intermediate inputs and firm performance in the food industry. Our main findings show that an increase in import competition spurs firm-level productivity growth. Furthermore, the productivity growth effect attributable to imported intermediate inputs is significantly stronger than the effect due to imported final products. In addition, we find that new imported inputs are of particular importance, especially for Italian food firms, though less so for the French firms. Finally, the productivity growth effect of trade integration tends to be asymmetric across firms: more productive firms gain more from trade integration. These stylised facts have interesting policy implications.