On the Competitiveness Effects of Quality Labels: Evidence from the French Cheese Industry
Abstract
The paper questions the impact of geographical indication labels on firm export competitiveness in the French cheese
and cream industry. We use firm level data from the French custom and an original dataset of firms and products
concerned by Protected Designations of Origin (PDO). Our estimations show that PDO labeling allows firms to
increase their price by 11.5% on average. Moreover these products are perceived by consumers as products of better
quality than non-PDO products. Regarding trade margins, while the effect on trade volume (the intensive margin of
trade) is not significant, PDO labeling increases the probability of serving a foreign country (the extensive margin of
trade). Our estimations show that exports of PDO products would increase by 11.4% if non-EU consumers value PDO
label as much as EU consumers.
Domains
Economics and FinanceOrigin | Explicit agreement for this submission |
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