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Analyzing Trade Liberalization Effect in the Egg Sector Using a Dynamic Gravity Model

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  • Tamini, Lota Dabio
  • Doyon, Maurice
  • Simon, Rodrigue
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    Abstract

    This study analyzes the effects of different liberalization scenarios in the international trade of eggs and egg products. We use a dynamic gravity model that takes into account the observed persistence of trading partners. The estimated parameters of the gravity model serve to quantify the impact of various liberalization scenarios on the probability of importing (extensive margin) and on trade volumes (intensive margin). The results indicate that even in the context of aggressive trade liberalization, trade gains at the extensive margin will be modest. Gains at the intensive margin of trade are present even in the context of partial liberalization - Doha type - of trade.

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    File URL: http://purl.umn.edu/125286
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    Bibliographic Info

    Paper provided by University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE) in its series Working Papers with number 125286.

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    Date of creation: Jun 2012
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    Handle: RePEc:ags:ulavwp:125286

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    Postal: Faculté des sciences de l'agriculture et de l'alimentation, Pavillon Paul-Comtois, 2425 rue de l'Agriculture, local 4424, Québec, Qc, G1V 0A6
    Phone: 418-656-2131 poste 5098
    Fax: 418-656-7821
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    Web page: http://www.create.ulaval.ca
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    Related research

    Keywords: Eggs and eggs products; persistence in trade; trade liberalization; gravity model; random-effects dynamic probit; autoregressive panel; Agricultural and Food Policy; Q17; F13;

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    References

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    1. Claudio Paiva, 2008. "Assessing protectionism and subsidies in agriculture-a gravity approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(5), pages 628-640.
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    13. Luca De Benedictis & Claudio Vicarelli, 2004. "Trade Potentials In Gravity Panel Data Models," ISAE Working Papers 44, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
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    15. Ivan T. Kandilov & Xiaoyong Zheng, 2011. "The impact of entry costs on export market participation in agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 42(5), pages 531-546, 09.
    16. Jason H. Grant & Thomas W. Hertel & Thomas F. Rutherford, 2007. "Dairy Tariff-Quota Liberalization: Contrasting Bilateral and Most Favored Nation Reform Options," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 673-684.
    17. Abdessalem Abbassi & Olivier Bonroy & Jean-Philippe Gervais, 2008. "Dairy Trade Liberalization Impacts in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 313-335, 09.
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