Advanced Search
MyIDEAS: Login to save this article or follow this journal

Armington Elasticities and Tariff Regime: An Application to European Union Rice Imports

Contents:

Author Info

  • Marilyne Huchet-Bourdon
  • Esmaeil Pishbahar

Abstract

The European Union's (EU) import sources for rice include developing countries and least developed countries (LDCs). The EU has made a commitment to allow duty-free and quota-free access to rice imports originating in the LDCs from September 2009 onward. The purpose of this article is to answer two questions: (1) does the inclusion of import tariffs lead to different estimated Armington elasticities? (2) when a discriminating tariff is introduced, what happens to the market share of large rice exporters to the EU, especially of poor countries? We present the Armington model, derived from a constant elasticity of substitution (CES) utility function, and a non-homothetic CES utility functional form, which is more flexible. We then estimate the Armington model, with and without the inclusion of a tariff, and we compare the elasticities. Lastly, we model five scenarios with different discriminated import tariff rates to calculate the changes in the market access of large rice exporters to the EU. Our empirical results show the importance of non-homothetic preferences and import tariffs. Ignoring import tariffs and the non-homothetic parameter may produce results which are biased and of uncertain validity. Furthermore, the simulation findings demonstrate that, in spite of a large difference between import tariff rate of Suriname and other countries (scenario V), its market access would not change greatly. This may be caused by supply side problems like poor infrastructures, weak technology and small capacity production in LDCs. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1477-9552.2009.00217.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 60 (2009)
Issue (Month): 3 ()
Pages: 586-603

as in new window
Handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:586-603

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0021-857X

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Gallaway, Michael P. & McDaniel, Christine A. & Rivera, Sandra A., 2003. "Short-run and long-run industry-level estimates of U.S. Armington elasticities," The North American Journal of Economics and Finance, Elsevier, vol. 14(1), pages 49-68, March.
  2. Yves Surry & Nadine Herrard & Yves Le Roux, 2003. "Modelling trade in processed food products: an econometric investigation for France," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(4), pages 571-571, December.
  3. Kapuscinski, Cezary A. & Warr, Peter G., 1999. "Estimation of Armington elasticities: an application to the Philippines," Economic Modelling, Elsevier, vol. 16(2), pages 257-278, April.
  4. Yang, Seung-Ryong & Koo, Won W,, 1993. "A generalized Armington trade model: Respecification," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 9(4), December.
  5. Ito, Shoichi & Chen, Dean T. & Peterson, E. Wesley F., 1990. "Modeling international trade flows and market shares for agricultural commodities: a modified Armington procedure for rice," Agricultural Economics, Blackwell, vol. 4(3-4), pages 315-333, December.
  6. El-Agraa,Ali (ed.), 2007. "The European Union," Cambridge Books, Cambridge University Press, number 9780521874434.
  7. Ito, Shoichi & Chen, Dean T. & Peterson, E. Welsey F., 1990. "Modeling international trade flows and market shares for agricultural commodities: a modified Armington procedure for rice," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 4(3-4), December.
  8. Mika Saito, 2004. "Armington elasticities in intermediate inputs trade: a problem in using multilateral trade data," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 1097-1117, November.
  9. Mika Saito, 2004. "Armington Elasticities in Intermediate Inputs Trade," IMF Working Papers 04/22, International Monetary Fund.
  10. Yang, Seung-Ryong & Koo, Won W., 1993. "A generalized armington trade model: Respecification," Agricultural Economics, Blackwell, vol. 9(4), pages 347-356, December.
  11. Yves Surry & Nadine Herrard, 2002. "Modelling trade in processed food products: an econometric investigation for France," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 1-28, March.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:586-603. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.