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Do Trade Agreements Increase Food Trade?

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  • Irfan Mujahid
  • Matthias Kalkuhl

Abstract

In addition to multilateral trade agreements under the World Trade Organization (WTO), the world has seen a remarkable proliferation of regional trade agreements (RTAs) in the last two decades. This study investigates the impacts of these multilateral and regional trade institutions on food trade. The Gravity model of international trade is used for the empirical analysis. The model is developed in a large panel data setting and attempted to address some potential problems in the estimation including multilateral trade resistances, zero trade values and endogeneity. The results suggest that both the WTO and RTAs have delivered significant positive effects on trade, but only RTAs are found to have succeeded in increasing food trade among the members. However, although on average the WTO has negative implications on food trade, it has facilitated the developing countries more than the developed countries.
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  • Irfan Mujahid & Matthias Kalkuhl, 2016. "Do Trade Agreements Increase Food Trade?," The World Economy, Wiley Blackwell, vol. 39(11), pages 1812-1833, November.
    • Handle: RePEc:bla:worlde:v:39:y:2016:i:11:p:1812-1833
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    Cited by:

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    2. Mathias Juust & Priit Vahter & Urmas Varblane, 2017. "The Trade Effects Of The Eu-South Korea Free Trade Agreement In The Automotive Industry," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 105, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Tiziano Distefano & Francesco Laio & Luca Ridolfi & Stefano Schiavo, 2017. "Shock transmission in the International Food Trade Network. A Data-driven Analysis," SEEDS Working Papers 0617, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2017.
    4. Matthias Kalkuhl & Lukas Kornher & Matthias Kalkuhl & Irfan Mujahid, 2015. "Food price volatility in developing countries – the role of trade and storage," EcoMod2015 8415, EcoMod.
    5. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.

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