Liesbeth Colen

Private Standards, Trade and Poverty: GlobalGAP and Horticultural Employment in Senegal

There is a growing body of literature that analyses the implications of private food standards for developing countries. Most of this literature has focused on the trade effects of standards and on the effects on exporters and producers. Very few studies have looked at the effect of standards for workers in export supply chains – although this is important for poverty reduction. In this paper, we use original panel data from surveys among workers in the horticultural export industry in Senegal to analyse the effects of GlobalGAP certification of exporter–producer companies on the employment conditions of workers in these companies. The results suggest that GlobalGAP certification is associated with an increase in workers’ daily wages and with longer employment periods. We put forward different explanations for the mechanism through which these effects on employment conditions can emerge.

Economic Growth, Globalisation and Beer Consumption

We analyse the evolution of beer consumption between countries and over time. Historically, there have been major changes in beer consumption in the world. In recent times, per capita consumption has decreased in traditional beer drinking countries while it increased strongly in emerging economies. Recently, China has overtaken the US as the largest beer economy. A quantitative empirical analysis studies the relationships among economic growth, globalisation and beer consumption. The relationship between income and beer consumption has an inverse U-shape. Beer consumption initially increases with rising incomes; but at higher levels of income beer consumption falls. Increased globalisation has contributed to a convergence in alcohol consumption patterns across countries. In countries that were originally beer drinking countries, the share of beer in total alcohol consumption reduced, while this is not the case in countries which traditionally drank mostly wine or spirits.

The Role of Food Standards in Trade and Development

Food standards are increasingly impacting developing countries’ trade and development. Over the past two decades, both public and private standards have proliferated in global food supply chains. Standards alter the structure and governance of these supply chains and affect the in- or exclusion of smallholder farmers and the distribution of benefits along the chain. Several authors have argued that increasing standards act as barriers to developing countries’ integration in global markets and lead to the exclusion or reduced bargaining power of small farmers. On the other hand, there is evidence that standards can generate important benefits for poor rural households in developing countries, either in the form of contracts with processing or exporting companies, or as employees. Hence, the rapid rise of food standards does not necessarily lead to new barriers to trade and more inequitable distribution of the gains, but can also enhance developing countries’ participation in high-value global food markets and generate benefits for the poor.

Income Elasticities of Food Demand in Africa: A Meta-Analysis

In order to combat malnutrition, economists and policymakers need to understand how food demand will change, as the continent further develops. Especially, a better understanding of, first, the factors underlying the relation between income and food demand, and, second, how this relation is changing according to the income level and/or characteristics of the country under study, may help improve the design and implementation of nutrition policies. There are a number of studies that have estimated the relation between income growth and food demand in Africa, but the resulting estimates are highly heterogeneous. This report provides a systematic review of the existing literature on income elasticities of food demand in Africa. Using a meta-analysis approach, this report identifies the factors determining the relation between food demand and income. Further research could usefully explore in greater detail some of the patterns identified and, in doing so, contribute to the design of policies aimed at addressing malnutrition.

Globalization, Private Standards and Poverty: Evidence from Senegal

The expert contributors assess the state-of-the-art with regard to private regulation of food, natural resources and labor conditions. They begin with an introduction to, and discussion of, several leading existing private standards, and go on to assess private food standards and their legitimacy and effectiveness in the context of the global trade regime.

How) can economic experiments inform EU agricultural policy

This report provides an overview of the potential contribution of economic experiments to the Common Agricultural Policy evaluation toolbox. The methodology of economic experiments is briefly described in chapter 2. Chapter 3 presents examples of experimental studies relevant for the analysis of the Common Agricultural Policy. Chapter 4 discusses whether there is room for economic experiments in the EU evaluation toolbox. Chapter 5 identifies the main challenges when implementing economic experiments. Chapter 6 provides a set of recommendations, arising from the discussions between the authors of this report and policy officers from DG AGRI, relative to the introduction of economic experiments in the CAP evaluation toolbox.

What Type of FDI is Attracted by Bilateral Investment Treaties

Developing countries have increasingly engaged in Bilateral Investment Treaties (BITs) to attract foreign investors. While it is found that BITs are successful in attracting FDI, we argue that the effectiveness of BITs depends on the type of FDI. We find the effect of BITs to differ importantly across sectors of investment. FDI characterized by higher sunk investment costs responds more strongly to the signing of BITs. Given that the development impact of FDI differs according to the sector of investment, our results raise concerns on the effectiveness of BITs in attracting FDI in those sectors where it is considered most beneficial.