Impact of International Food Standards on Firms’ Export Behavior: A Case of Indian Marine Industry

Abstract

Exporters of food products face stringent standards due to the possibility of contaminations and diseases. Standards are complex, varying across countries, time and stage of production. The cost of compliance is, typically, borne by the exporting firm. This paper examines the impact of international food standards on the export behavior of Indian marine firms. Standards negatively affect the value of exports and participation in trade. Further, there is a heterogeneous impact of standards. Relatively larger, profitable and productive firms are able to comply with the standards and gain from them. The long-term implication could be the concentration of market power in this industry.