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Long Term Structural Changes in the EU Countries (1970-2000): Convergence or Divergence in the Agri-Food System?

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  • Peroni, Marco
  • Brasili, Cristina
  • Fanfani, Roberto
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    Abstract

    The main objective of this paper is to analyse the structural changes in European Agri-food systems in the last 30 years in order to verify the presence of a convergence process towards a more homogeneous structure among EU countries. This analysis considers the relative importance of the main components of Agri-food systems (agriculture, food industry and food consumption) and how they change over time. The analysis of convergence utilise the European National Accounting Data (from the SEC2 Data Base of Eurostat) from 1970 to 2000 for twelve EU countries. We use tests of convergence on cross section data by countries, but also stochastic kernel methodologies to verify the dynamic evolution of groups of countries inside the EU. The results show there are important process of convergence among countries for the variables of the Agri-food system that are more linked to the economic development, such as the importance of agriculture and food consumption in GDP. On the other hand there are divergences on the variables more linked to the openness degree and to the competitiveness of the Agri-food system. The presence of polarisation process among groups of countries contribute to the permanence of long run structural changes among Northern and Southern countries in the EU.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25659.

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    Date of creation: 2006
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    Handle: RePEc:ags:iaae06:25659

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    Related research

    Keywords: agro-food System; structural Changes; EU countries; convergence; Industrial Organization; A1; C23; O1; Q10; Q17;

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    1. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(437), pages 1045-55, July.
    2. Lichtenberg, Frank R, 1994. "Testing the Convergence Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 576-79, August.
    3. Danny Quah, 1992. "Empirical Cross-Section Dynamics in Economic Growth," FMG Discussion Papers, Financial Markets Group dp154, Financial Markets Group.
    4. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, Springer, vol. 1(2), pages 149-87, June.
    5. Danny Quah, 2000. "Cross Country Growth Comparison: Theory to Empirics," CEP Discussion Papers dp0442, Centre for Economic Performance, LSE.
    6. Martin Carree & Luuk Klomp, 1997. "Testing The Convergence Hypothesis: A Comment," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 683-686, November.
    7. Dowrick, Steve & Nguyen, Duc-Tho, 1989. "OECD Comparative Economic Growth 1950-85: Catch-Up and Convergence," American Economic Review, American Economic Association, vol. 79(5), pages 1010-30, December.
    8. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
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