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Modelling trade in processed food products: an econometric investigation for France

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  • Yves Surry
  • Nadine Herrard

Abstract

This paper presents an econometric study of trade in processed food products based on French data. We use a differentiated-product model, which captures non-homothetic consumer preferences but also allows for testable restrictive structures such as homogeneity, homogeneous weak separability and the Armington specification. The model framework adopted is based on the constant difference of elasticities (CDE) function. The Armington assumption is rejected for the majority of products. Econometric results suggest that French consumers distinguish not only between home-produced and imported food products but also between supplies originating from elsewhere in the European Union and imports from the rest of the world. Copyright 2002, Oxford University Press.

Suggested Citation

  • Yves Surry & Nadine Herrard, 2002. "Modelling trade in processed food products: an econometric investigation for France," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(1), pages 1-28, March.
    • Handle: RePEc:oup:erevae:v:29:y:2002:i:1:p:1-28
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    Cited by:

    1. Alexandre Gohin & Fabienne Féménia, 2009. "Estimating Price Elasticities of Food Trade Functions: How Relevant is the CES‐based Gravity Approach?," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 253-272, June.
    2. Hess, Sebastian & Surry, Yves R., 2011. "The CDET Profit Function: Could it generate a Parsimonious Agricultural Sector Model?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114539, European Association of Agricultural Economists.
    3. Marilyne Huchet‐Bourdon & Esmaeil Pishbahar, 2009. "Armington Elasticities and Tariff Regime: An Application to European Union Rice Imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 586-603, September.
    4. Welsch, Heinz, 2008. "Armington elasticities for energy policy modeling: Evidence from four European countries," Energy Economics, Elsevier, vol. 30(5), pages 2252-2264, September.
    5. Stefan Bojnec & Darja Majkovic, 2006. "Globalization of Slovenian Agricultural and Food Trade," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 4(4), pages 347-361.
    6. Preckel, Paul V. & Cranfield, John A.L. & Hertel, Thomas W., 2005. "Implicit Additive Preferences: A Generalization Of The Ces," Staff Papers 28646, Purdue University, Department of Agricultural Economics.
    7. Femenia, Fabienne & Gohin, Alexandre, 2007. "Estimating price elasticities of food trade functions: How relevant is the gravity approach?," Working Papers 7211, TRADEAG - Agricultural Trade Agreements.
    8. Bojnec, Stefan & Majkovic, Darja & Turk, Jernej, 2005. "Trade Types in Slovenian Primary and Processed Agricultural Trade," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24477, European Association of Agricultural Economists.

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