Non-tariff measures and productivity of Ukrainian food-processing firms

ukraine
trade-wars
firms
agrifood
non-tariff-measures
firm-level
Journal of Agricultural Economics, 2022. With Volodymyr Vakhitov, Veronika Movchan, and Mariia Panga.


Show abstract

Using detailed data on veterinary, ecological, sanitary, phytosanitary, and mandatory certification measures, we study how non-tariff measures affect firm productivity in Ukraine’s food-processing industry through forward and backward linkages, comparing quantity- and revenue-based measures of total factor productivity. Non-tariff measures on intermediate inputs reduce quantity-based productivity, and firms that rely heavily on imported inputs see the biggest long-run productivity losses when input requirements tighten; revenue-based effects are muted because firms adjust prices and quality instead.
Published

January 1, 2022

Non-tariff measures imposed by trading partners act as a quality filter on Ukrainian food-processing exporters: firms that clear them see productivity gains, while the compliance costs push less productive firms out of export markets entirely. Using firm-level microdata, we separate this selection effect from the direct within-firm productivity effect of meeting stricter standards — evidence directly relevant to Ukraine’s ongoing agrifood market access negotiations with the EU.

Published in: Journal of Agricultural Economics, 73(1), 234–256

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