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Total Factor Productivity And Processed Food Trade: A Cross-Country Analysis

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  • Gopinath, Munisamy
  • Carver, Jason

Abstract

Processed food products account for a growing share of global agricultural trade. Growth in total factor productivity and intersectoral linkages between agricultural and processed foodsectors are hypothesized as factors explaining this phenomenon. Estimating the neoclassical trade model using an internationally comparable database, we find evidence of (a) Hechsher-Ohlin (factor endowments) and Ricardian-type (technology) effects in agricultural and processed food trade, and (b) transfer of comparative advantage from the primary agricultural sector to the processed food sector. Thus, public policies protecting primary agriculture can adversely affect processed food sectors, while those supporting R&D efforts can bring about dynamic and comparative advantage.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 27 (2002)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:jlaare:31130

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Web page: http://waeaonline.org/
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Keywords: Productivity Analysis;

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  1. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 69-85, January.
  2. Gopinath, Munisamy & Roe, Terry L., 1996. "Sources Of Growth In U.S. Gdp And Economy-Wide Linkages To The Agricultural Sector," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 21(02), December.
  3. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-94, September.
  4. Arnade, Carlos A. & Gopinath, Munisamy, 1998. "Capital Adjustment In U.S. Agriculture And Food Processing: A Cross-Sectoral Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 23(01), July.
  5. Nerlove, Marc, 1971. "Further Evidence on the Estimation of Dynamic Economic Relations from a Time Series of Cross Sections," Econometrica, Econometric Society, Econometric Society, vol. 39(2), pages 359-82, March.
  6. Coyle, William T. & Mark Gehlhar & Thomas W. Hertel & Zhi Wang & Wusheng Yu, 1998. "Understanding the Determinants of structural Change in World Food Markets," GTAP Working Papers 260, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  7. Burgess, David F, 1974. "A Cost Minimization Approach to Import Demand Equations," The Review of Economics and Statistics, MIT Press, vol. 56(2), pages 225-34, May.
  8. W. Erwin Diewert, 1980. "Aggregation Problems in the Measurement of Capital," NBER Chapters, in: The Measurement of Capital, pages 433-538 National Bureau of Economic Research, Inc.
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Cited by:
  1. Theofanis Papageorgiou & Panayotis G. Michaelides & John G. Milios, 2011. "Technology and economic fluctuations in the US food sector (1958-2006): An empirical approach from a political economy perspective," International Journal of Social Economics, Emerald Group Publishing, vol. 38(2), pages 140-164, January.
  2. Echeverria, Rodrigo & Gopinath, Munisamy & Moreira, Victor H. & Cortes, Pedro, 2009. "The Export-Production Decision of Chilean Farmers: The Case of Blueberry Producers," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51025, International Association of Agricultural Economists.

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