The Impact of a “National Green Export Review” on Competitiveness: Empirical Evidence for Ecuador’s Fish Exports

Abstract

Fish products comprise more than 20% of total Ecuadorian exports. Ecuador introduced the “National Green Export Review” (NGER) in 2015, which aims at making Ecuador’s fishing industry more sustainable to improve the international market access to Ecuador’s fish products. Has this policy achieved its goal? In order to answer this question, this article applies the local projection approach to explore the dynamic impact of the NGER on Ecuador’s share of fish exports in the world fish market. Contrary to expectations, the results are consistent with the view that the NGER does not enhance Ecuador’s competitiveness. The NGER is also not able to compensate for the fall in Ecuador’s share in the world fish market, which has been induced by a change in consumer preferences for tuna and shrimp, Ecuador’s main fish products. The concluding section of the paper provides policy advice on how to make the NGER more effective in achieving its goal.