Factor Content of Bilateral Trade: The Role of Firm Heterogeneity and Transaction Costs
AbstractIn this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate cross-country differences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade we find that the first two hypotheses are confirmed by the majority of developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organization, both hypotheses are confirmed by the majority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organization in the CEE.
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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 23809.
Date of creation: 2009
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Factor content; bilateral trade; relative factor abundance; technological differences; agriculture; transaction costs;
Other versions of this item:
- d'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 305-317, 05.
- Kancs, d'Artis & Ciaian, Pavel, 2009. "Factor Content of Agricultural Trade: The Role of Firm Heterogeneity and Transaction Costs," 2009 Conference, August 16-22, 2009, Beijing, China 51429, International Association of Agricultural Economists.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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- Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2011.
"Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE - Vantaggi comparati, costi di transazione e contenuto dei fattori nel commercio agr,"
Economia Internazionale / International Economics,
Camera di Commercio di Genova, vol. 64(1), pages 67-101.
- Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
- Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2013. "Empirical Evidence of the Distributional Effects of the CAP in New EU Member States," Factor Markets Working Papers 170, Centre for European Policy Studies.
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