SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Haq, Zahoor Ul; Meilke, Karl D.; Cranfield, John A.L..

and this is a problem when estimating log-linear gravity equations. This has caused many researchers to either ignore the zero trade flows or to replace the zero with a small positive number. Both of these actions bias the resulting parameter estimates of the gravity equation. In this study we correct for this misspecification by using the Heckman selection model to estimate bilateral trade flows for 46 agrifood products, for the period 1990 to 2000, for 52 countries. In our sample, selection bias rarely affects the signs of variables but often has a substantial effect on the magnitude, statistical significance and economic interpretation of the marginal effects. Hence, treating zero trade flows properly is important from both a statistical and an...

The Influence of Market Returns and Government Payments on Canadian Farmland Values

Palavras-chave: Gravity model; Selection bias; Agrifood Trade; Heckman Selection Model; Marginal effects; Agricultural and Food Policy; Demand and Price Analysis; International Relations/Trade; Research Methods/ Statistical Methods.

Ano: 2011

URL: http://purl.umn.edu/116851

Vyn, Richard J.; Haq, Zahoor Ul; Weerahewa, Jeevika; Meilke, Karl D..

This study estimates the impact of changes in market returns and government payments on farmland values across Canada using data from 1959 to 2009. A recursive simultaneous equation model is estimated to account for the counter-cyclical relationship between market returns and government payments. The results indicate that farmland values are more responsive to changes in market returns than in government payments, but both are important drivers of land values. The elasticity of land values with respect to government payments is lower than has been observed in the United States. In addition, the partial decoupling of government payments has not reduced their impact on farmland values.

Tipo: Working Paper

Palavras-chave: Farmland Values; Government Payments; Market Returns JEL Classifications:; Agricultural and Food Policy; Demand and Price Analysis; Land Economics/Use.

Ano: 2012

URL: http://purl.umn.edu/122738

Differentiated Agri-Food Product Trade and the Linder Effect

Using a generalized gravity equation, this study tests for the Linder effect in differentiated agrifood product trade, i.e. as the demand structures of two countries become more similar, their trade intensity increases. Two proxies of demand structure, the Balassa index and the absolute value of the difference in per capita GDPs of trading partners, are used to capture the Linder effect. In addition, two measures of bilateral trade, the Grubel and Lloyed index, and the value of bilateral trade are used as the dependent variable. The study investigates the role of the Linder effect in explaining the trade of 37 differentiated agri-food and beverage products categorized into eight product groups: cereals; fresh fish; frozen fish; vegetables; fresh fruit;...

The Determinants of Farmland Values in Canada

Palavras-chave: Agri-food; Generalized Gravity Equation; Grubel and Lloyed index; Linder Effect; Trade; Agricultural and Food Policy; International Relations/Trade.

Ano: 2008

URL: http://purl.umn.edu/46629

Weerahewa, Jeevika; Meilke, Karl D.; Vyn, Richard J.; Haq, Zahoor Ul.

This study has examined the determinants of farmland values in Canada. The empirical results for the period 1959-2004 show that farmland values seem to be disconnected from adjusted earnings per acre regardless of model specification. Differences in model specification can change the interpretation of the importance of government payments in influencing farm land values. If a time trend is included in the land value function government payments appear to have no effect on land values; when the time trend is removed they have a statistically significant positive effect on land values. With respect to the other explanatory variables, the higher the population density, the higher farmland values, indicating that urbanization increases farmland values....

The Role of Income and Non-homothetic Preferences in Trading Differentiated Food and Beverages. The Case of Canada, the United States, and Selected EU Countries

Palavras-chave: Land values; Canada; Agricultural and Food Policy; Demand and Price Analysis.

Ano: 2008

URL: http://purl.umn.edu/43461

This study investigates the role of income in determining the agrifood exports of selected EU countries, Canada, and the United States (U.S.) by estimating per capita bilateral trade flows for 10 commodity groups across 52 countries for the period 1990–2000. About 43 percent of the total observations of bilateral trade-flows for the selected regions and commodities are zero. Therefore, the fixed-effects Heckman two-step estimation procedure is used to account for the zero observations instead of ignoring or truncating the zeros. A number of hypotheses are tested to highlight the role of income in determining agrifood exports of differentiated agrifood products. The results show that the three regions (selected EU countries, Canada, United States) face...

What impact has food price inflation had on consumer welfare: a global analysis

Palavras-chave: International Relations/Trade.

Ano: 2007

URL: http://purl.umn.edu/7336

Cranfield, John A.L.; Haq, Zahoor Ul.

The impact of rising global food prices on consumer welfare is investigated. A quadratic AIDS model is estimated using data spanning countries at various levels of economic development. Statistical comparison suggests the QUAIDS model is preferred over the non-linear AIDS model. Estimated parameters are used to calibrate a QUAIDS indirect utility function and base utility for welfare analysis. Compensated variation associated with recently observed food price inflation for different foods in different income cohorts of countries is calculated. Per capita compensated variation increases with per capita expenditure. However, per capita compensated variation expressed as a percent of per capita expenditure falls as one moves from less developed to more...

Tipo: Conference Paper or Presentation

Palavras-chave: Consumer/Household Economics.

Ano: 2010

URL: http://purl.umn.edu/58894

Do the BRICs and Emerging Markets Differ in their Agrifood Trade?

The Role of Income Growth in Emerging Markets and the BRICs in Agrifood Trade

Contributed Paper prepared for presentation at the International Association of Agricultural Economists Conference, Beijing, China, August 16-22, 2009

Tipo: Conference Paper or Presentation

Palavras-chave: Emerging economies; BRIC economies; Food trade; Income elasticities; Economic growth; Demand and Price Analysis; International Development; International Relations/Trade.

Ano: 2009

URL: http://purl.umn.edu/51395

This study develops an import demand model to explore the role of income in explaining the trade performance of low, middle and high-income countries with a special emphasis on Brazil, Russia, India and China – the BRIC economies. The study estimates the impact of the growth in per capita income on the trade of agrifood products using data for 52 countries and 20 agrifood products for the years 1990 to 2006. The results suggest that China, Russia and Brazil have more income elastic import demand than other middle-income countries. Conversely, the income elasticities of import demand in India are similar to other low-income countries and for the most part statistically equal to zero.

Does the Gravity Model Suffer from Selection Bias?

Palavras-chave: Emerging economies; BRIC economies; Food trade; Income elasticities; Economic growth; Agricultural and Food Policy; International Development; International Relations/Trade.

Ano: 2009

URL: http://purl.umn.edu/48122

Haq, Zahoor Ul; Meilke, Karl D.; Cranfield, John A.L..

When analyzing bilateral trade flow data, zero trade flows are quite common and problematic when a gravity equation is estimated with a log-linear functional form. This has caused many researchers to either ignore the zero trade flows or to replace zero with a small positive number. Both of these actions bias the resulting parameter estimates of the gravity equation. In this study we correct for this misspecification by using the Heckman selection model to estimate the bilateral trade flows for 46 agrifood products, for the period 1990 to 2000, for 52 countries. In our sample, selection bias rarely affects the signs of variables but often has a substantial effect on the magnitude, statistical significance and economic interpretation of the marginal...