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The Role of Income Growth in Emerging Markets and the BRICs in Agrifood Trade

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Author Info
Haq, Zahoor
Karl, Meilke
Abstract

This study develops an import demand model to explore the role of income in explaining the trade performance of low, middle and high-income countries with a special emphasis on Brazil, Russia, India and China – the BRIC economies. The study estimates the impact of the growth in per capita income on the trade of agrifood products using data for 52 countries and 20 agrifood products for the years 1990 to 2006. The results suggest that China, Russia and Brazil have more income elastic import demand than other middle-income countries. Conversely, the income elasticities of import demand in India are similar to other low-income countries and for the most part statistically equal to zero.

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Publisher Info
Paper provided by Canadian Agricultural Trade Policy Research Network in its series Working Papers with number 48122.

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Date of creation: Feb 2009
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Handle: RePEc:ags:catpwp:48122

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Related research
Keywords: Emerging economies; BRIC economies; Food trade; Income elasticities; Economic growth; Agricultural and Food Policy; International Development; International Relations/Trade;

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  1. Cranfield, J. A. L. & Preckel, Paul V. & Eales, James S. & Hertel, Thomas W., 2002. "Estimating consumer demands across the development spectrum: maximum likelihood estimates of an implicit direct additivity model," Journal of Development Economics, Elsevier, vol. 68(2), pages 289-307, August. [Downloadable!] (restricted)
  2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Cranfield, John A L, et al, 2000. "On the Estimation of 'An Implicitly Additive Demand System.'," Applied Economics, Taylor and Francis Journals, vol. 32(15), pages 1907-15, December. [Downloadable!] (restricted)
  4. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.


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