• Title/Summary/Keyword: Neighbor reputation spillover

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Spillover Effects Study of US Import Refusals on ASEAN Countries' Fishery Products (미국의 대 아세안 수산물 수입거부조치 파급효과 연구)

  • Li, Ping;Kim, Hag-Min
    • Korea Trade Review
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    • v.44 no.2
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    • pp.109-126
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    • 2019
  • Import refusals can be considered a new method of non-tariff barriers. This study aims to analyze reputation spillover effects on fish and fishery products imported from ASEAN countries to the U.S. FDA. The supply of aquatic products is not stable due to various factors such as reduction of fish stocks and climate change. Fish is a basic food ingested directly, but there are many ways to control the safety of aquatic products. ASEAN countries account for about 20% of U.S.imports in fish and fishery products. For Southeast Asian countries, fish and fishery products comprise a high proportion of exports revenue. Despite the large share of exports to the U.S., Southeast Asia countries have been receiving many import refusals from the United States. In this study, a theoretical model for examining import refusals is suggested using the negative binomial counting process. The reputation spillover effect, was divided into two spillover effects of 'neighbor reputation' and 'sector reputation'. Results show that there exists a neighbor reputation spillover effect. It can be said if there was a import refusal of the same product from neighboring countries in the preceding year, the home country have a possibility to experience import refusals of the same product. Therefore, it is interpreted that neighboring countries have good standard compliance can help home countries to effectively reach the target markets. Our findings have a important policy implication for ASEAN exporters of fish and fishery products.