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Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE AgEcon
Ciaian, Pavel; Kancs, d'Artis; Pokrivcak, Jan.
The present study examines factor content in the CEE transition country agricultural trade. However, deviating from the traditional approach, we do not test the HOV prediction. Instead, we examine the theoretical predictions that relate the factor content of international trade to cross-country differences in technology and endowments. Our empirical findings suggest that factor content between agricultural exports and imports is rather similar in CEE. In order to explain the general lack of the CEE agricultural specialisation and the observed paradox, we attempt to identify the role of transaction costs and market imperfections in determining factor content in agricultural production and trade. We find that technological differences and factor endowment...
Tipo: Conference Paper or Presentation Palavras-chave: Comparative Advantage; Transaction Cost; Factor Content; Trade; International Relations/Trade.
Ano: 2008 URL: http://purl.umn.edu/44135
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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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