EXPORTS AND INSTITUTIONS: THE ROLE OF PUBLIC AND PRIVATE STANDARDIZATION REQUIREMENTS IN THE LIVE ANIMALS TRADE
Institutional Quality; GLOBALGAP; International Standardization.
The process of globalization of markets has helped to increase the gross domestic product (GDP), so that the international trade of products of animal origin has become an important part of the world economy. Faced with increasing distances, better care with the handling and transport of this product has become necessary, in addition to the greater concern of the world population with food security. Thus, the use of standardization requirements in commerce, whether public or private, was encouraged. Despite the positive nature of adopting a trade standard, live animal exporters are mostly developing or underdeveloped countries, so trade flows can be affected by restrictions imposed by institutional differences with more developed countries, most importers . In this sense, this research sought to identify the effects of public and private standardization requirements on the trade of live animals, given the institutional differences, in the years 2014 to 2019, given the hypotheses that institutional differences inhibit trade and that the requirements reduce this negative effect caused by institutional structures. To test these scenarios, equations using the OLS and PPML method were estimated from the gravitational model. The objective results confirmed the negative effect that institutional differences have on trade, but which can be circumvented through GLOBALGAP certification.