This study empirically investigates the impact of mutual geographical indication (GI) recognition between China and the European Union (EU) on the quality upgrading of China's agricultural exports from 2000 to 2016. Using a multi-time point difference-in-differences model, the study finds that mutual GI recognition significantly improves export quality, particularly for products from countries with high GI endowments, large firms, and labor-intensive products. The mechanism analysis reveals that mutual GI recognition enhances quality through specialization agglomeration and cost-saving effects on the supply side, and domestic demand upgrading and product recognition effects on the demand side.

Weiwen Qian, Yinguo Dong, Yuchen Liu