Patterns and Determinants of International Trade Costs in the Food Industry
AbstractThis paper documents patterns in international trade costs in processed foods for a large cross-section of developing and developed countries, during the 1976-2000 period. A trade costs index is inferred from a micro-founded gravity equation that incorporates bilateral `iceberg?trade costs. For 2000, the weighted average tariff equivalent of trade costs ranges from 73% for the North to 134% for the South countries. The time patterns show an average reduction of about -13% in the observed period, that rises to -26% for the Emerging countries. However, the same does not apply for South countries. On ranking the trade costs determinants we find that, on average, geographical and historical factors seem to dominate those of infrastructure and institutions. However, trade policy emerges as an important determinant of the North-Emerging trade costs. Finally we find strong evidence that demand-side considerations also matter to explain trade costs.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 18807.
Length: 28 pages
Date of creation: 2007
Date of revision:
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Trade costs; Gravity; Processed Foods; Geography; Infrastructure; Trade Policy; Inequality;
Other versions of this item:
- Alessandro Olper & Valentina Raimondi, 2009. "Patterns and Determinants of International Trade Costs in the Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 273-297.
- Olper, Alessandro & Raimondi, Valentina, 2007. "Patterns And Determinants Of International Trade Costs In The Food Industry," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9799, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- F1 - International Economics - - Trade
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-02 (All new papers)
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- Shepherd, Ben, 2011. "Logistics costs and competitiveness: measurement and trade policy applications," MPRA Paper 38254, University Library of Munich, Germany.
- Olper, Alessandro & Pacca, Lucia & Curzi, Daniele, 2013.
"Trade, Import Competition and Productivity Growth In the Food Industry,"
Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain
152383, International Agricultural Trade Research Consortium.
- Olper, Alessandro & Pacca, Lucia & Curzi, Daniele, 2013. "Trade, Import Competition and Productivity Growth In the Food Industry," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152385, International Agricultural Trade Research Consortium.
- Imre Ferto & Stefan Bojnec, 2012. "EU Enlargement and Agro-Food Export Performance on EU Market Segments," IEHAS Discussion Papers 1206, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Ihle, Rico & von Cramon-Taubadel, Stephan & Zorya, Sergiy, 2010. "Country and border effects in the transmission of maize prices in Eastern Africa: evidence from a semi-parametric regression model," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96184, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
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