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Do food scares explain supplier concentration ? An analysis of EU agri-food imports

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Author Info

  • Mélise Jaud

    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, LEA - Laboratoire d'Economie Appliquée - Institut national de la recherche agronomique (INRA) : UR1043)

  • Olivier Cadot

    (CEPR - Center for Economic Policy Research - CEPR, CEPREMAP - Centre pour la recherche économique et ses applications, FERDI - Fondation pour les Etudes et Recherches sur le Développement International - FERDI, UNIL - Université de Lausanne - Université de Lausanne)

  • Akiko Suwa-Eisenmann

    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, LEA - Laboratoire d'Economie Appliquée - Institut national de la recherche agronomique (INRA) : UR1043)

Abstract

This paper documents a decreasing trend in the geographical concentration of EU agrofood imports. Decomposing the concentration indices into intensive and extensive margins components, we find that the decrease in overall concentration indices results from two diverging trends: the pattern of trade diversifies at the extensive margin (EU countries have been sourcing their agri-food products from a wider range of suppliers), while geographical concentration increases at the intensive-margin (EU countries have concentrated their imports on a few major suppliers). This leads to an increasing inequality in market shares between a small group of large suppliers and a majority of small suppliers. We then move on to exploit a database of food alerts at the EU border that had never been exploited before. After coding it into HS8 categories, we regress the incidence of food alerts by product on determinants including exporter dummies as well as HS8 product dummies. Coefficients on product dummies provide unbiased estimates of the intrinsic vulnerability of exported products to food alerts, as measured at the EU border. We incorporate the product risk coefficient as an explanatory variable in a regression of geographical concentration and show that concentration is higher for risky products.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number halshs-00967423.

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Date of creation: Jul 2009
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Handle: RePEc:hal:wpaper:halshs-00967423

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Related research

Keywords: European Union ; Import concentration ; Sanitary risk ; Food ; Agricultural trade;

References

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  1. Klinger, Bailey & Lederman, Daniel, 2004. "Discovery and development : an empricial exploration of"new"products," Policy Research Working Paper Series 3450, The World Bank.
  2. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
  3. Alberto Amurgo-Pacheco, Martha Denisse Pierola, 2007. "Patterns of export diversification in developing countries: intensive and extensive margins," IHEID Working Papers 20-2007, Economics Section, The Graduate Institute of International Studies, revised Jul 2007.
  4. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
  5. Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self-Discovery," Working Paper Series rwp02-023, Harvard University, John F. Kennedy School of Government.
  6. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
  7. Paul Brenton & John Sheehy & Marc Vancauteren, 2001. "Technical Barriers to Trade in the European Union: Importance for Accession Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 39(2), pages 265-284, 06.
  8. Garcia Martinez, Marian & Poole, Nigel, 2004. "The development of private fresh produce safety standards: implications for developing Mediterranean exporting countries," Food Policy, Elsevier, vol. 29(3), pages 229-255, June.
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