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Trade Liberalisation: The Effects of Free Trade Agreements on the Competitiveness of the Dairy Sector

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  • Catherine Couillard
  • Ekaterina Turkina

Abstract

type="main" xml:id="twec12181-abs-0001"> In recent years, preferential trade agreements (PTAs), free trade agreements (FTAs) in particular, have proliferated while WTO negotiations have stagnated. This paper contributes to the literature on trade liberalisation and the agricultural sector by analysing the effects of FTAs on the competitiveness of the dairy sector across 76 countries and over a 20-year period from 1990 to 2009. With a longitudinal econometric model, the results demonstrate that when a country has a revealed comparative advantage in the dairy sector, FTAs positively influence several indicators of competitiveness in the dairy sector, such as production, market share and trade balance. The results also indicate that multilateral FTAs are more beneficial than bilateral FTAs. There is strong empirical evidence that FTAs are more beneficial to developed countries than to developing countries. There is no statistical evidence to support the hypothesis about a relationship between FTAs and farm-gate price.

Suggested Citation

  • Catherine Couillard & Ekaterina Turkina, 2015. "Trade Liberalisation: The Effects of Free Trade Agreements on the Competitiveness of the Dairy Sector," The World Economy, Wiley Blackwell, vol. 38(6), pages 1015-1033, June.
    • Handle: RePEc:bla:worlde:v:38:y:2015:i:6:p:1015-1033
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    File URL: http://hdl.handle.net/10.1111/twec.2015.38.issue-6
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    Citations

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    Cited by:

    1. Ahmed, Wasim & Hussain, Safdar & Jafar, Rana Muhammad Sohail & Guang-Ju, Wang & Rabnawaz, Ambar & Saqib, Zulkaif Ahmed & JianZhou, Yang, 2016. "Impacts of Trade Liberalization on Dairy Industry in China," MPRA Paper 70385, University Library of Munich, Germany.
    2. Junqian Xu & Yuanyuan Wu, 2018. "A Comparative Study of the Role of Australia and New Zealand in Sustainable Dairy Competition in the Chinese Market after the Dairy Safety Scandals," IJERPH, MDPI, vol. 15(12), pages 1-24, December.
    3. Ambroziak, Łukasz & Szczepaniak, Iwona & Pawlak, Karolina, 2022. "Prospects for the Development of Polish Agri- -Food Exports to the Regional Comprehensive Economic Partnership Countries," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 329864, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    4. Magdana Kondaridze & Jeff Luckstead, 2023. "Determinants of dairy‐product trade: Do subsidies matter?," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 857-873, September.
    5. Tunahan Erdem, 2020. "Competitiveness of dried sector: A case study of world and Turkey," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(8), pages 365-372.
    6. Waldemar Bojar & Wojciech Żarski & Renata Kuśmierek-Tomaszewska & Jacek Żarski & Piotr Baranowski & Jaromir Krzyszczak & Krzysztof Lamorski & Cezary Sławiński & Konstadinos Mattas & Christos Staboulis, 2023. "A Comprehensive Approach to Assess the Impact of Agricultural Production Factors on Selected Ecosystem Services in Poland," Resources, MDPI, vol. 12(9), pages 1-19, August.

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