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The political economy of geographical indications

Author

Listed:
  • Koen Deconinck
  • Martijn Huysmans
  • Jo Swinnen
Abstract
In this article we study the political process that governs the creation and size of new Geographical Indications (GIs). Producers can choose to apply for a GI and subsequently go through a bargaining process with the government. We derive the optimal GI area from the point of view of consumers, producers, social welfare, and the government; and we show how bargaining leads to a GI size in between the applicant’s optimum and the government’s optimum. Under the assumption that the non-GI good is a commodity, any GI implemented through the political process is welfare-enhancing, but not all welfare-enhancing GIs will be proposed by producers.

Suggested Citation

  • Koen Deconinck & Martijn Huysmans & Jo Swinnen, 2015. "The political economy of geographical indications," Working Papers of Department of Economics, Leuven 509755, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:509755
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    References listed on IDEAS

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    1. Stephan Marette & Roxanne Clemens & Bruce Babcock, 2008. "Recent international and regulatory decisions about geographical indications," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 453-472.
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    13. Johan F.M. Swinnen & Thijs Vandemoortele, 2009. "Are food safety standards different from other food standards? A political economy perspective," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(4), pages 507-523, December.
    14. Johan F. M. Swinnen & Thijs Vandemoortele, 2011. "Trade and the Political Economy of Food Standards," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(2), pages 259-280, June.
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    Cited by:

    1. William Skinner & Georgina Drew & Douglas K. Bardsley, 2023. "“Half a flood’s no good”: flooding, viticulture, and hydrosocial terroir in a South Australian wine region," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(2), pages 549-564, June.
    2. Costanigro, Marco & Scozzafava, Gabriele & Casini, Leonardo, 2019. "Vertical differentiation via multi-tier geographical indications and the consumer perception of quality: The case of Chianti wines," Food Policy, Elsevier, vol. 83(C), pages 246-259.
    3. Duvaleix, Sabine & Emlinger, Charlotte & Gaigné, Carl & Latouche, Karine, 2021. "Geographical indications and trade: Firm-level evidence from the French cheese industry," Food Policy, Elsevier, vol. 102(C).
    4. Cockx, Lara & Meloni, Giulia & Swinnen, Johan, 2021. "The Water of Life and Death: A Brief Economic History of Spirits," Journal of Wine Economics, Cambridge University Press, vol. 16(4), pages 355-399, November.
    5. repec:lic:licosd:41719 is not listed on IDEAS
    6. Catherine Haeck & Giulia Meloni & Johan Swinnen, 2019. "The Value of Terroir: A Historical Analysis of the Bordeaux and Champagne Geographical Indications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 598-619, December.
    7. Saïdi, Monia & Ay, Jean-Sauveur & Marette, Stéphan & Martin, Christophe, 2020. "Willingness-to-Pay for Reshuffling Geographical Indications," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 95-111, February.
    8. Guilherme Silva Fracarolli, 2021. "Global Markets, Local Issues: The Hegemonic Process of Agri-Food Construction to Present Challenges," Land, MDPI, vol. 10(11), pages 1-24, November.
    9. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2022. "Predicting agri-food quality across space: A Machine Learning model for the acknowledgment of Geographical Indications," Food Policy, Elsevier, vol. 112(C).
    10. Jean‐Sauveur Ay, 2021. "The Informational Content of Geographical Indications," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 523-542, March.
    11. Susana López‐Bayón & Marta Fernández‐Barcala & Manuel González‐Díaz, 2020. "In search of agri‐food quality for wine: Is it enough to join a geographical indication?," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 568-590, October.
    12. Huysmans, Martijn, 2021. "On Feta and Fetta: Protecting EU Geographical Indications Down Under," 2021 Conference, August 17-31, 2021, Virtual 314978, International Association of Agricultural Economists.
    13. repec:lic:licosd:40818 is not listed on IDEAS
    14. Martijn Huysmans, 2022. "On Feta and Fetta: Protecting EU geographical indications in Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 598-613, June.
    15. Eugenio Pomarici & Roberta Sardone, 2020. "EU wine policy in the framework of the CAP: post-2020 challenges," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-40, December.
    16. Daniele Curzi & Martijn Huysmans, 2022. "The Impact of Protecting EU Geographical Indications in Trade Agreements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 364-384, January.
    17. Raul Serrano & Natalia Dejo‐Oricain & Juan Ferrer & Vicente Pinilla & Silvia Abella‐Garcés & Maria Teresa Maza, 2023. "Domestic clustered networks and internationalization of agrifood SMEs," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 167-195, January.
    18. Guilherme Silva Fracarolli, 2021. "Mapping Online Geographical Indication: Agrifood Products on E-Commerce Shelves of Mercosur and the European Union," Economies, MDPI, vol. 9(2), pages 1-20, May.
    19. M. Huysmans, 2019. "Exporting protection: EU trade agreements, geographical indications, and gastronationalism," Working Papers 19-26, Utrecht School of Economics.

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