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Agricultural Trade Flows among Developing Countries: Do Regional Preferential Trade Agreements make a Difference?

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  • Tembo, Gelson
  • Jayne, Thomas S.

Abstract

Regional integration through trade is recognized as one way to foster economic growth and poverty reduction. This paper uses the gravity model and 11-year panel data (1996-2006) on Southern African Development Community (SADC) member countries to study Zambia’s regional agricultural trade flows and the impact of the SADC Trade Protocol (SADC-TP). Zambia’s volume of trade is significantly related to most of the standard gravity variables. The results indicate that Zambia has been largely trading below potential, especially with respect to exports. There have been improvements in Zambia’s trade flows during the SADC-TP period but only with a few countries. Further improvements will require re-examining protocol implementation and individual countries’ production and marketing costs.

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File URL: http://purl.umn.edu/51733
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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51733.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51733

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Related research

Keywords: Southern Africa; regional trade; gravity analysis; Zambia; Agricultural and Food Policy; Food Security and Poverty; International Relations/Trade; Marketing; Research Methods/ Statistical Methods; C23; C51; F12; F14; F15;

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  1. Alan V. Deardorff, 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Working Papers 5377, National Bureau of Economic Research, Inc.
  2. Howard J. Wall, 2000. "Gravity model specification and the effects of the Canada-U.S. border," Working Papers 2000-024, Federal Reserve Bank of St. Louis.
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