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Access to OECD Agricultural Market: A Gravity Border Effect Approach

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  • Olper, Alessandro
  • Raimondi, Valentina

Abstract

This paper uses the border effect estimate from a gravity model to assess the level of trade integration in agricultural markets between 22 OECD countries, over the 1995-2002 period. The empirical analysis shows that using a gravity equation derived from theory, in the estimation of the border effect, matters. A representative estimate of the border effect shows that crossing a national border into the OECD countries induces a trade-reduction effect by a factor of 8. This average value masks substantial differences in market access across the country groups considered, with higher value in trade between EU countries and lower in trade between CEEC countries. However, the trade integration between CEECs and others OECDs increases substantially in the observed period. Finally, the equivalent tariffs implied by the estimated border effects are not implausible when compared to the actual range of direct protection measures.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24543.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24543

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Related research

Keywords: agricultural trade; border effect; gravity equation; OECDs; International Relations/Trade; F13; F14; Q17;

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References

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Citations

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Cited by:
  1. Olper, Alessandro & Raimondi, Valentina, 2006. "Explaining National Border Effects in the Quad Food Trade," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25467, International Association of Agricultural Economists.
  2. Charlotte Emlinger & Florence Jacquet & Emmanuelle Chevassus Lozza, 2008. "Tariffs and other trade costs: assessing obstacles to Mediterranean countries' access to EU-15 fruit and vegetable markets," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(4), pages 409-438, December.
  3. Bartosova, Dasa & Bartova, Lubica & Fidrmuc, Jarko, 2008. "EU Enlargement Implications on the New Member States Agri-food Trade," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44122, European Association of Agricultural Economists.
  4. Olper, Alessandro & Raimondi, Valentina, 2002. "Elasticity of trade flow to trade barriers: A comparison among emerging estimation techniques," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44119, European Association of Agricultural Economists.

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