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Trade liberalisation, agricultural productivity and poverty in the Mediterranean region

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  • Nadia Belhaj Hassine
  • Magda Kandil

Abstract

A widely held view in the economic literature is that productivity growth is an important pathway through which trade liberalisation may alleviate poverty. This paper explores the link between trade openness, agricultural productivity growth and poverty reduction in a panel of Mediterranean countries. Technical efficiency scores and total factor productivity indexes are computed using the latent class stochastic frontier model to account for cross-country heterogeneity in farming production technologies. The relevance of agricultural productivity gains for poverty reduction is investigated through joint estimation of real per capita GDP growth and inequality changes in a dynamic panel setting. The findings illustrate the positive effects of openness on farming efficiency and productivity and give strong support to the view that agricultural productivity growth is a channel for poverty alleviation. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

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  • Nadia Belhaj Hassine & Magda Kandil, 2009. "Trade liberalisation, agricultural productivity and poverty in the Mediterranean region," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 1-29, March.
  • Handle: RePEc:oup:erevae:v:36:y:2009:i:1:p:1-29
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    3. Martinez Cillero, Maria & Breen, James & Thorne, Fiona & Wallace, Michael & Hennessy, Thia, 2016. "Technical efficiency and technology heterogeneity of beef farms: a latent class stochastic frontier approach," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236351, Agricultural Economics Society.
    4. Mengistu Assefa Wendimu & Arne Henningsen & Tomasz Gerard Czekaj, 2017. "Incentives and moral hazard: plot level productivity of factory-operated and outgrower-operated sugarcane production in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 549-560, September.
    5. Espoir, Delphin Kamanda & Bannor, Frank & Sunge, Regret, 2021. "Intra-Africa agricultural trade, governance quality and agricultural total factor productivity: Evidence from a panel vector autoregressive model," EconStor Preprints 235617, ZBW - Leibniz Information Centre for Economics.
    6. Muhammad Khan & Muhammad Khan & Khalid Zaman & Muhammad Khan, 2014. "The evolving role of agricultural technology indicators and economic growth in rural poverty: has the ideas machine broken down?," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2007-2022, July.
    7. Maria Teresa Trentinaglia & Lucia Baldi & Massimo Peri, 2023. "Supporting agriculture in developing countries: new insights on the impact of official development assistance using a climate perspective," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-23, December.
    8. Yuan, Lingran & Zhang, Qizheng & Wang, Shuo & Hu, Weibin & Gong, Binlei, 2022. "Effects of international trade on world agricultural production and productivity: evidence from a panel of 126 countries 1962-2014," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(2), March.
    9. Kazukauskas, Andrius & Newman, Carol F. & Thorne, Fiona S., 2010. "Analysing the Effect of Decoupling on Agricultural Production: Evidence from Irish Dairy Farms using the Olley and Pakes Approach," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(03), pages 1-14, September.

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