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A Threshold-Var Approach To Assess The Efficacy Of The Eu Import Regime

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  • Santeramo, Fabio Gaetano
  • Cioffi, Antonio
  • Vitale, Cosimo Damiano

Abstract

The efficacy of the entry price policy in the European fresh fruits and vegetables sector is not well understood. We investigate econometrically the efficacy of the import policy. The analysis estimates a threshold vector autoregressive model using data on imports the main competing country on the European Union domestic markets. Our results allow concluding on the insulating effects induced by the entry price system. We argue that the quota restrictions are likely to provide larger contribution to the domestic market stabilization. Policy implications are provided.

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Bibliographic Info

Article provided by Niğde University, Faculty of Economics and Administrative Sciences in its journal International Journal of Food and Agricultural Economics (IJFAEC).

Volume (Year): 2 (1)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:ijfaec:163704

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Keywords: Non-tariff barriers; trade; entry price; threshold models; integration; Mediterranean area; Agricultural and Food Policy; International Relations/Trade;

References

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  1. Swinbank, Alan & Ritson, Christopher, 1995. "The impact of the GATT agreement on EU fruit and vegetable policy," Food Policy, Elsevier, vol. 20(4), pages 339-357, August.
  2. Santeramo, Fabio Gaetano & Cioffi, Antonio, 2012. "The entry price threshold in EU agriculture: Deterrent or barrier?," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 691-704.
  3. Swinbank, Alan, 2011. "Fruit and Vegetables, and the Role They Have Played in Determining the EU’s Aggregate Measurement of Support," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 12(2).
  4. Deaton, A. & Laroque, G., 1989. "On The Behavior Of Commodity Prices," Papers 145, Princeton, Woodrow Wilson School - Public and International Affairs.
  5. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
  6. JosÈ-MarÌa GarcÌa-Alvarez-Coque, 2002. "Agricultural trade and the Barcelona Process: is full liberalisation possible?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 399-422, July.
  7. Cioffi, Antonio & Santeramo, Fabio Gaetano & Vitale, Cosimo, 2010. "The price stabilization effects of the EU entry price scheme for fruits and vegetables," MPRA Paper 24828, University Library of Munich, Germany.
  8. George Kapetanios & Yongcheol Shin, 2004. "Unit Root Tests in Three-Regime SETAR Models," ESE Discussion Papers 104, Edinburgh School of Economics, University of Edinburgh.
  9. Frederic Bec & Melika Ben Salem & Marine Carrasco, 2004. "Tests for Unit-Root versus Threshold Specification With an Application to the Purchasing Power Parity Relationship," Journal of Business & Economic Statistics, American Statistical Association, vol. 22, pages 382-395, October.
  10. Rickard, Bradley J. & Sumner, Daniel A., 2011. "Was there policy "reform"? Evolution of EU domestic support for processed fruits and vegetables," Food Policy, Elsevier, vol. 36(3), pages 438-449, June.
  11. Jose-Maria Garcia-Alvarez-Coque & Victor Martinez-Gomez & Miquel Villanueva, 2010. "Seasonal protection of F&V imports in the EU: impacts of the entry price system," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 205-218, 03.
  12. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
  13. Santeramo, Fabio Gaetano & Cioffi, Antonio, 2. "Transmission Of Market Crises In The European Vegetables Sector," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L’Informatore Agrario, issue 2.
  14. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
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