The impact of food safety standard on coffee export: the case in Vietnam during 2005-2014

Abstract

The objective of this study is to scrutinize the impact of FSS on the quantity of Vietnam’s coffee export. Meanwhile, the regulated number of pesticides or average maximum residue levels is usually applied as a measurement of Food Safety Standard of a country. The data covers 56 countries from 2005 to 2014 due to the data availability from Agrobase-Logigram’s Homologa database providing coffee FSS. The Fixed effect estimator is employed in the panel gravity model. Furthermore, Driscoll – Kraay Standard Errors for Fixed effect estimator is used for robustness checks. Significantly, the primary findings determine that the regulated number of pesticides has a negative impact while average maximum residue levels have a positive effect on the export of Vietnamese coffee. Furthermore, GDP per capita of importing countries, domestic consumption, and TWO member dummy variable demonstrate a contribution to Vietnamese coffee export. Meanwhile, the real exchange rate depreciation and price*distance variable indicate a negative influence on the quantity of Vietnam’s coffee export. Last but not least important, there are not any significant evidences proving the effect of trade openness and tariff on Vietnamese coffee export in the study.