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Structural Reforms and Agricultural Export Performance: An Empirical Analysis

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  • Susanto, Dwi
  • Rosson, C. Parr, III
  • Costa, Rafael F.

Abstract

This study empirically investigates the effects of structural reforms on bilateral trade flows of agricultural products. Specifically, the study jointly analyzes the impacts of three different reforms including financial reform, trade reform, and agricultural reform on agricultural trade. The results suggest that less restrictive credit constraints, reduced tariff rates, and less government interventions are likely to generate increase in total agricultural exports. The evidence further indicates that the impacts of the reforms vary considerably across less aggregated products as well as across reform forms. The results provide a solid policy foundation for pursuing structural reforms in order to stimulate trade and economic growth, given the fact that the index level of reforms has not reached the level of full liberalization yet

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File URL: http://purl.umn.edu/119657
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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama with number 119657.

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Date of creation: Jan 2012
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Handle: RePEc:ags:saea12:119657

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Keywords: agricultural reform; agricultural sector; financial reform; gravity model; International Relations/Trade;

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  1. Abdul Abiad & Enrica Detragiache & Thierry Tressel, 2010. "A New Database of Financial Reforms," IMF Staff Papers, Palgrave Macmillan, vol. 57(2), pages 281-302, June.
  2. repec:hal:cesptp:halshs-00321632 is not listed on IDEAS
  3. Nicolas Berman & Jérôme Héricourt, 2008. "Financial factors and the margins of trade : evidence from cross-country firm-level data," Documents de travail du Centre d'Economie de la Sorbonne bla08050, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  4. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  5. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
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