Does GlobalGAP certification promote agrifood exports?

Abstract

In global agricultural value-chains, private food standards are proliferating. Yet, their trade effects remain poorly understood. This paper assesses the effect of GlobalGAP certification on exports of apples, bananas and grapes. We estimate a structural gravity model using a global dataset of certified producers and the share of certified land area in total harvest area. While our results confirm GlobalGAP standards as catalysts to trade, we find that the trade-enhancing effect varies across products and destination markets. Furthermore, the trade effect is driven more by growth in the area of certified farms than by new certified producers.