Certification of Origin as a Non-Tariff Barrier |
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Authors: | Claire Chambolle Eric Giraud-Héraud |
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Institution: | INRA, LORIA, 65 bld de Brandebourg, 94205, Ivry sur Seine, France. Ecole Polytechnique, Laboratoire d'Econométrie, 1 Rue Descartes, 75005 Paris, France. Tel: (33) 01 55 55 82 58;Fax: (33) 01 55 55 84 28;E-mail: .; INRA, LORIA, 65 bld de Brandebourg, 94205, Ivry sur Seine, France. Ecole Polytechnique, Laboratoire d'Econométrie, 1 Rue Descartes, 75005 Paris, France. Tel: (33) 01 55 55 82 56;Fax: (33) 01 55 55 84 28;E-mail: . |
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Abstract: | This paper puts forward the opinion that the certification of origin constitutes another type of non‐tariff barrier. Indeed, certification of origin often combines both a quantity restriction and a sort of quality cost subsidy. We consider the canonical model of strategic trade policy, whereby two firms located respectively in the home country and in a foreign country are competing on the domestic market. In this framework, we show how certification can allow the domestic firm to position itself as a high quality producer. If, however, the certified firm offers the low quality good, then consumers’ surplus may be improved. |
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