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Market Access Asymmetry in Food Trade

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  • Alessandro Olper

    ()

  • Valentina Raimondi

Abstract

Using a bilateral trade equation derived from a monopolistic competition model, we investigated market access reciprocity in food trade among the US, Canada, the EU and Japan. We explore country and industry-specific market access asymmetry through the border effect approach, re-challenging the underlying main explanations. Our findings reveal marked asymmetry in reciprocal trade openness; indeed, access to the food markets of the US and Japan appears significantly easier than reciprocal access to both Canada and, especially, the EU. Policy trade barriers, firstly in the forms of NTBs, the degree of product differentiation and `home bias?in preferences, are all important factors in explaining border effects. Moreover, several stylized facts suggest that border effect interpretation should also be based on political economy arguments.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 144 (2008)
Issue (Month): 3 (October)
Pages: 509-537

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Handle: RePEc:spr:weltar:v:144:y:2008:i:3:p:509-537

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Related research

Keywords: Gravity; market access; asymmetry; NTBs; food trade;

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References

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Citations

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Cited by:
  1. Vigani, Mauro & Olper, Alessandro, 2013. "GMO standards, endogenous policy and the market for information," Food Policy, Elsevier, vol. 43(C), pages 32-43.
  2. Clas Eriksson, 2011. "Home bias in preferences and the political economics of agricultural protection," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(1), pages 5-23.
  3. Olper, Alessandro & Raimondi, Valentina, 2005. "Access to OECD Agricultural Market: A Gravity Border Effect Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24543, European Association of Agricultural Economists.
  4. Pascal L. Ghazalian, 2012. "Home Bias in Primary Agricultural and Processed Food Trade: Assessing the Effects of National Degree of Uncertainty Aversion," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 265-290, 06.
  5. Olper, Alessandro & Curzi, Daniele & Pacca, Lucia, 2014. "Do food standards affect the quality of EU imports?," Economics Letters, Elsevier, vol. 122(2), pages 233-237.

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