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Trade liberalisation effects on agricultural goods at different processing stages

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  • Lota D. Tamini
  • Jean-Philippe Gervais
  • Bruno Larue

Abstract

A two-stage gravity-based model is used to explain cattle and beef bilateral trade flows between 42 countries. The model parameters are estimated using a double-hurdle model with a multivariate sample selection procedure. The parameter estimates are used to simulate probabilities of new trade flows and the increase in existing trade flows following reductions in import tariffs, export subsidies and domestic support. The results show that adjustments in beef exports occur at both the extensive and intensive margins. Full liberalisation would entail adjustments in the extensive margins for developing economies that are about six-fold the adjustments under partial liberalisation. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/erae/jbq035
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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 37 (2010)
Issue (Month): 4 (December)
Pages: 453-477

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Handle: RePEc:oup:erevae:v:37:y:2010:i:4:p:453-477

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Cited by:
  1. Tamini, Lota Dabio & Doyon, Maurice & Simon, Rodrigue, 2012. "Analyzing Trade Liberalization Effect in the Egg Sector Using a Dynamic Gravity Model," Working Papers 125286, University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE).
  2. Tamini, Lota D. & Doyon, Maurice & Simon, Rodrigue, 2012. "Analyzing trade liberalization effect in egg sector using a dynamic gravity model," MPRA Paper 39315, University Library of Munich, Germany.
  3. Lota D. Tamini & Maurice Doyon & Rodrigue Simon, 2012. "Analyzing Trade Liberalization Effect in the Egg Sector Using a Dynamic Gravity Model," Cahiers de recherche CREATE 2012-6, CREATE.
  4. Shepherd, Ben & Wilson, Norbert L.W., 2013. "Product standards and developing country agricultural exports: The case of the European Union," Food Policy, Elsevier, vol. 42(C), pages 1-10.

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