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Agricultural Trade Flows among Developing Countries: Do Regional Preferential Trade Agreements make a Difference? AgEcon
Tembo, Gelson; Jayne, Thomas S..
Regional integration through trade is recognized as one way to foster economic growth and poverty reduction. This paper uses the gravity model and 11-year panel data (1996-2006) on Southern African Development Community (SADC) member countries to study Zambia’s regional agricultural trade flows and the impact of the SADC Trade Protocol (SADC-TP). Zambia’s volume of trade is significantly related to most of the standard gravity variables. The results indicate that Zambia has been largely trading below potential, especially with respect to exports. There have been improvements in Zambia’s trade flows during the SADC-TP period but only with a few countries. Further improvements will require re-examining protocol implementation and individual countries’...
Tipo: Conference Paper or Presentation Palavras-chave: Southern Africa; Regional trade; Gravity analysis; Zambia; Agricultural and Food Policy; Food Security and Poverty; International Relations/Trade; Marketing; Research Methods/ Statistical Methods; C23; C51; F12; F14; F15.
Ano: 2009 URL: http://purl.umn.edu/51733
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Are Compact Cities Environmentally (and Socially) Desirable? AgEcon
Gaigne, Carl; Riou, Stephane; Thisse, Jacques-Francois.
There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environmentally friendly as the average commuting length is reduced. However, when we account for the possible relocation of activities within and between cities in response to a higher population density, the latter may cease to hold. Because changes in population density affect land rents and wages, firms and workers re-optimize and choose new locations. We show that this may reshape the urban system in a way that...
Tipo: Working Paper Palavras-chave: Greenhouse gas; Commuting costs; Transport costs; Cities; Environmental Economics and Policy; D61; F12; Q54; Q58; R12.
Ano: 2012 URL: http://purl.umn.edu/121692
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Beyond the Home Market Effect: Market Size and Specialization in a Multi-Country World AgEcon
Behrens, Kristian; Lamorgese, Andrea R.; Ottaviano, Gianmarco I.P.; Tabuchi, Takatoshi.
The standard two-country model of international trade with monopolistic competition predicts a more-than-proportional relationship between a country’s share of world production of a good and its share of world demand for that same good, a result known as the “home market effect”. We first show that this prediction does not generally carry through to the multi-country case, as production patterns are crucially affected by third country effects. We then derive an alternative prediction that holds whatever the number of countries considered. This new prediction takes into account important features of the real world such as comparative advantage due to cross-country technological differences and lack of factor price equalization.
Tipo: Working or Discussion Paper Palavras-chave: Comparative Advantage; Home Market Effect; Hub Effect; International Trade; Monopolistic Competition; Multi-country Models; International Relations/Trade; F12; R12.
Ano: 2009 URL: http://purl.umn.edu/56212
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Bilateralism in Agriculture when Countries use Distorting Domestic Policies AgEcon
May, Daniel E..
A recent theoretical research proved that countries always have an incentive to deviate from global free trade when international markets are oligopolistic and when governments are politically biased. This result suggests that global free trade in agriculture (GFTA) cannot be reached as political bias and market power have both been identified. According to May (2011), bilateral agreements could eventually be used as alternative political tools to reach GFTA. This article extends the work of this author to determine whether bilateralism could also lead to GFTA in a realistic world where governments use distorting domestic policies to protect their agricultural sector.
Tipo: Conference Paper or Presentation Palavras-chave: Bilateral Agreements; Agricultural Trade Liberalization; Distorting Domestic Policies; International Trade Networks.; International Relations/Trade; F12; Q17; Q18.
Ano: 2011 URL: http://purl.umn.edu/114657
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Certification of Origin and Brands Competition AgEcon
Chambolle, Claire; Giraud-Heraud, Eric.
We analyse the competition in quality and quantity between a foreign firm and a domestic firm. The domestic firm can belong to a certification of origin, whereas its rival uses a pure brand strategy. We will show how the certification can allow the domestic firm to position itself as a high quality producer and improve the average quality of the products offered on the market. If, however, the certified firm offers the low quality good, the certification can permit it to guarantee a higher profit than that of its competitor and to improve the consumers' surplus by favouring product standardisation.
Tipo: Conference Paper or Presentation Palavras-chave: Certification of origin; Quality; International competition; Demand and Price Analysis; L13; F12; F14.
Ano: 2002 URL: http://purl.umn.edu/24976
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Climate Change, Energy Demand and Market Power in a General Equilibrium Model of the World Economy AgEcon
Roson, Roberto; Bosello, Francesco; De Cian, Enrica.
Future energy demand will be affected by changes in prices and income, but also by other factors, like temperature levels. This paper draws upon an econometric study, disentangling the contribution of temperature in the determination of the annual regional demand for energy goods. Combining estimates of temperature elasticities with scenarios of future climate change, it is possible to assess variations in energy demand induced (directly) by the global warming. We use this information to simulate a change in the demand structure of households in a CGE model of the world economy, in a set of assessment exercises. The changing demand structure triggers a structural adjustment process, influencing trade flows, regional competitiveness of industries and...
Tipo: Working or Discussion Paper Palavras-chave: Climate Change; Energy; Computable General Equilibrium Models; Imperfect Competition; Resource /Energy Economics and Policy; D58; F12; Q43; Q54.
Ano: 2007 URL: http://purl.umn.edu/9095
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Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from CEE AgEcon
Kancs, d'Artis; Ciaian, Pavel; Pokrivcak, Jan.
The present study examines factor content of the CEE transition country agricultural trade. We examine the relative country abundance for labour, capital and land, and test the Heckscher-Ohlin-Vanek (HOV) hypothesis. Our empirical findings suggest that the factor content of agricultural exports and imports is rather similar in CEE and most of the agricultural trade flows do not satisfy the HOV prediction. In order to explain the general lack of agricultural specialisation and the observed paradox in the CEE's agricultural trade, we examine the role of transaction costs and market imperfections. We find that transaction costs and market imperfections distort farm specialisation and hence factor content of agricultural trade.
Tipo: Working or Discussion Paper Palavras-chave: Factor Content; Agricultural Trade; Comparative Advantages; Transaction Cost; Agricultural and Food Policy; F12; F14; D23; Q12; Q17.
Ano: 2009 URL: http://purl.umn.edu/115421
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Competition and Dynamics in Trade Patterns: Hungarian and Slovenian Agri-Food Trade with the European Unions' Trading Partners AgEcon
Bojnec, Stefan; Ferto, Imre.
Trade balances and unit values in Hungarian and Slovenian bilateral agri-food trade with Austria, Germany and Italy, respectively, to distinguish types of the one-way and the two-way trade flows, categories of price competition and categories of quality competition in the twoway trade flows, their dynamics and stability over time are analyzed. The two-way matched trade flows prevail among trade types. In the matched two-way bilateral agri-food trade there is prevalence of categories of price competition over categories of non-price competition, but varies across trading partners. In Hungarian agri-food trade the first category of successful price competition and the third category of successful non-price or quality competition prevail, suggesting...
Tipo: Conference Paper or Presentation Palavras-chave: Competition; Trade types; Dynamics; Mobility index; F12; Q17; Q18; International Relations/Trade.
Ano: 2006 URL: http://purl.umn.edu/25760
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Divergence - Is it Geography? AgEcon
Straubhaar, Thomas; Suhrcke, Marc; Urban, Dieter.
This paper tests a geography and growth model using regional data for Europe, the US, and Japan. We set up a standard geography and growth model with a poverty trap and derive a log-linearized growth equation that corresponds directly to a threshold regression technique in econometrics. In particular, we test whether regions with high population density (centers) grow faster and have a permanently higher per capita income than regions with low population density (peripheries). We find geography driven divergence for US states and European regions after 1980. Population density is superior in explaining divergence compared to initial income which the most important official EU eligibility criterium for regional aid is built on. Divergence is stronger on...
Tipo: Working or Discussion Paper Palavras-chave: Threshold estimation; New economic geography; Regional income; Growth; Poverty trap; Regime shifts; Bootstrap; International Development; O41; R11; F12.
Ano: 2002 URL: http://purl.umn.edu/26350
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Do Exports Raise Productivity? Plant-level Evidence from the Colombian Agri-food Industries AgEcon
Kandilov, Ivan T.; Liu, Xiangping.
Using detailed plant-level manufacturing Census data from the Colombian Agri-food industries, we show that exports raise plant-level productivity by about 15 to 20 percent. However, the estimates reveal that efficiency in plants that become persistent exporters, i.e. plants that service foreign markets at least 30 percent of the time during our sample years 1981-1991, increases about 30 percent upon their entry into foreign markets, while productivity in plants that become only occasional exporters does not change at all. Hence, the positive impact of exports on productivity for is driven by the large positive impact on persistent exporters. To identify the effect of exports on plant-level productivity we employ the Levinsohn-Petrin (2003) measure of...
Tipo: Working or Discussion Paper Palavras-chave: Exports; Productivity; Difference-in-differences; Propensity score matching; International Development; International Relations/Trade; Production Economics; Productivity Analysis; Q17; F12; Q12; O33.
Ano: 2011 URL: http://purl.umn.edu/103632
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Dynamics and Limited Cooperation In International Environmental Agreements AgEcon
Karp, Larry S.; Sacheti, Sandeep.
The amount of cooperation needed to improve the welfare of signatories of International Environmental Agreements (IEAs), in the presence of market imperfections, depends on the characteristics of pollution. In a dynamic model, the conventional wisdom on the effect of free-riding needs to be modified for certain types of pollution problems. For local pollution problems, a sufficient level of free-riding actually promotes signatories' welfare. For global pollution problems, the conventional wisdom is correct insofar as free-riding makes it more difficult to form a successful IEA. However, for some global pollution problems, free-riding may disappear. A static model may overstate or understate the difficulty of forming a successful IEA. The effect of an IEA...
Tipo: Working or Discussion Paper Palavras-chave: International Environmental Agreements; Environmental stocks; Dynamics; Free-riding; Environmental Economics and Policy; International Relations/Trade; F12; F42; Q28.
Ano: 1997 URL: http://purl.umn.edu/6212
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Eastern Enlargement of the EU: A Comprehensive Welfare Assessment AgEcon
Kohler, Wilhelm.
This paper takes a welfare-view on eastern enlargement of the EU, focusing on incumbent countries. Enlargement is decomposed into three elements: Single-market integration on commodity markets, budgetary costs from EU-expenditure policies, and single market- induced migration from new to present member countries. I first use an analytical model to derive a welfare equation that identifies the principle channels for incumbent country welfare gains and losses from enlargement, including product differentiation, capital accumulation, and unemployment due to search-costs. I then propose a method that allows to extend welfare results obtained from a detailed calibrated version of this model for Germany to other incumbent countries. The approach relies on model...
Tipo: Working or Discussion Paper Palavras-chave: EU Enlargement; Economic Integration; Commercial Policy; Migration; Welfare Analysis; Computable General Equilibrium; Search Unemployment; International Relations/Trade; Political Economy; F02; F12; F13; F15; F22.
Ano: 2004 URL: http://purl.umn.edu/26377
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Enlargement and the EU Periphery: The Impact of Changing Market Potential AgEcon
Brulhart, Marius; Crozet, Matthieu; Koenig, Pamina.
We study the impact of changing relative market access in an enlarged EU on the economies of incumbent Objective 1 regions. First, we track the impact of external opening on internal spatial configurations in a three-region economic geography model. External opening gives rise to potentially offsetting economic forces, but for most parameter configurations it is found to raise the locational attractiveness of the region that is close to the external market. Then, we explore the relation between market access and economic activity empirically. We simulate the impact of enlargement on EU Objective 1 regions. Predicted market-access induced gains in regional GDP and manufacturing employment are up to seven times larger in regions proximate to the new...
Tipo: Working or Discussion Paper Palavras-chave: New economic geography; Market potential; EU enlargement; Objective 1 regions; International Relations/Trade; F12; F15; R12.
Ano: 2004 URL: http://purl.umn.edu/26330
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Factor Content of Agricultural Trade AgEcon
Kancs, d'Artis; Ciaian, Pavel.
Replaced with revised version of paper 08/25/09.
Tipo: Conference Paper or Presentation Palavras-chave: Factor content; Heckscher-Ohlin; Factor abundance; Agricultural trade; International Relations/Trade; F12; F14; D23; Q12; Q17.
Ano: 2008 URL: http://purl.umn.edu/44458
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Factor Content of Agricultural Trade: The Role of Firm Heterogeneity and Transaction Costs AgEcon
Kancs, d'Artis; Ciaian, Pavel.
In this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate cross-country differences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade, we find that the first two hypotheses are confirmed by the majority of the developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organisation, both hypotheses are confirmed by the majority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organisation in the CEE.
Tipo: Conference Paper or Presentation Palavras-chave: Factor content; Bilateral trade; Relative factor abundance; Technological differences; Agriculture; Transaction costs; Institutional and Behavioral Economics; International Relations/Trade; Production Economics; F12; F14; D23; Q12; Q17.
Ano: 2009 URL: http://purl.umn.edu/51429
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Footloose Capital, Market Access, and the Geography of Regional State Aid AgEcon
Ottaviano, Gianmarco I.P..
The global welfare implications of home market effects in trade models with imperfect competition are little understood. This paper proposes a simple model in which such implications can be easily analyzed. It shows an overall tendency of imperfectly competitive sectors to inefficiently cluster in locations that offer market access advantages. The more so the stronger the market power of firms as well as the intensity of increasing returns to scale and the lower the trade costs. As such features are likely to differ widely across sectors, those results provide theoretical ground to the promotion of regional policies that are also sectorspecific and not only region-specific as currently in the EU.
Tipo: Working or Discussion Paper Palavras-chave: Economic integration; Specialization; Home market effect; Regional disparities; Regional policy; International Relations/Trade; Political Economy; F12; L13; R13.
Ano: 2001 URL: http://purl.umn.edu/26387
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Gains from trade liberalization with imperfectly competitive world markets. A note. AgEcon
Anania, Giovanni.
The paper shows how analyses assuming perfect competition can yield a distorted estimation of the expected effects of a trade liberalization when market imperfections exist. The analytical framework adopted is very simple and three extreme imperfect market structures are considered. In the first case, the exporting country maximizes its producer and consumer surplus by intervening in the world market. The second market imperfection considered is the existence of a private firm playing the role of "pure middleman" in the world market. Then the case of a producer-owned marketing board which is granted exclusive export authority is addressed. It is shown that estimates of the impact of a tariff reduction in terms of prices and volume traded obtained assuming...
Tipo: Journal Article Palavras-chave: Trade liberalization; Imperfect markets; Monopoly; Monopsony; Marketing board; International Relations/Trade; F12; F13; Q17; Q18.
Ano: 2003 URL: http://purl.umn.edu/28798
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Intellectual Property Rights, Product Complexity, and the Organization of Multinational Firms (Previously titled: International Sourcing, Product Complexity and Intellectual Property Rights) AgEcon
Naghavi, Alireza; Spies, Julia; Toubal, Farid.
Current version uploaded April 2013.
Tipo: Working Paper Palavras-chave: Sourcing Decision; Product Complexity; Intellectual Property Rights; Fractional Logit Estimation; Production Economics; F12; F23; O34.
Ano: 2011 URL: http://purl.umn.edu/119100
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Intraindustry Trade and the Environment: Is There a Selection Effect? AgEcon
Aralas, Sarma B.; Hoehn, John P..
Replaced with revised version of paper 08/06/10.
Tipo: Conference Paper or Presentation Palavras-chave: Environment; Trade; Monopolistic Competition; Selection effect; Environmental quality; Panel data; OECD; Pollution; Environmental Economics and Policy; International Development; International Relations/Trade; Q56; Q51; Q53; Q58; F12; F18.
Ano: 2010 URL: http://purl.umn.edu/61367
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IS 'GETTING THE PRICES RIGHT' ALWAYS RIGHT? HOW TRADE LIBERALIZATION CAN FAIL AgEcon
Gaitan, Beatriz; Pavel, Ferdinand.
We present a general equilibrium model with oligopsonistic market structure in one of the sectors. Buyers of inputs can set the price of inputs by being involved in rent seeking activities. The framework developed is applied to the Bulgarian economy in particular to the agro-food chain. From the application to the Bulgarian economy we find that if there are market imperfections, such as oligopsonistic behavior in the economy, there are no significant welfare gains from free trade. Significant welfare gains from trade are observed only when a competitive structure prevails. We show that eliminating this market imperfection can bring important welfare implications and an efficient reallocation of resources.
Tipo: Conference Paper or Presentation Palavras-chave: Imperfect Competition; Oligopsony; International Trade; Growth and Development; Transition Economies; International Relations/Trade; D34; E13; F12; L16.
Ano: 2000 URL: http://purl.umn.edu/21881
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