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Abstract
We study the e§ect of sanitary and phytosanitary (SPS) measures on Chinese
agricultural exports and the role of trade intermediaries in this process
following Chinaís accession to the World Trade Organization. While agricultural
exports and SPS regulations have both grown, the use of trade intermediaries
has declined sharply. We develop a model of heterogeneous
producer-level decisions about choice of export mode that is consistent with
this trend. In our econometric analysis, we analyze the e§ects of SPS measures
and trade intermediaries on Chinese fruit and vegetable exports using
transaction-level customs data. In contrast to much of the literature, we
Önd a positive relationship between SPS measures and exports. The interaction
between SPS measures and the use of trade intermediaries is, however,
negative, which is also consistent with our model of producersíexport mode
decisions.