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

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  • Lota D. Tamini
  • Maurice Doyon
  • Rodrigue Simon

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: https://www.create.ulaval.ca/sites/create.ulaval.ca/files/Publications/create2012-6.pdf
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Bibliographic Info

Paper provided by CREATE in its series Cahiers de recherche CREATE with number 2012-6.

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Date of creation: 2012
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Handle: RePEc:lvl:creacr:2012-6

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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;

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References

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  1. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
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  6. 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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  18. Mark Stewart, 2006. "Maximum simulated likelihood estimation of random-effects dynamic probit models with autocorrelated errors," Stata Journal, StataCorp LP, vol. 6(2), pages 256-272, June.
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  20. 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.
  21. Rafajlovic, Juanita & Cardwell, Ryan T., 2010. "The Implications Of The Wto Negotiations On The Canadian Chicken Market: Two Representations Of Chicken And Stochastic World Prices," Working Papers 95814, Canadian Agricultural Trade Policy Research Network.
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