The paper
Using US food-import refusal data, this paper examines how compliance histories extend beyond individual products and countries. It finds evidence of reputational spillovers across related products and neighboring exporters.
Research findings
- A previous refusal involving a related product from the same country is associated with a higher likelihood of another refusal.
- Refusals involving neighboring countries also predict subsequent refusals, with these patterns especially important for middle-income developing countries.
Policy takeaways
- Build consistent food-safety compliance across sectors, since one product’s performance can affect others.
- Use regional cooperation on standards and compliance to address shared reputational risks.