Analyzing Trade Liberalization Effect in the Egg Sector Using a Dynamic Gravity Model
AbstractThis 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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Bibliographic InfoPaper provided by CREATE in its series Cahiers de recherche CREATE with number 2012-6.
Date of creation: 2012
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Eggs and eggs products; persistence in trade; trade liberalization; gravity model; random-effects dynamic Probit; autoregressive panel;
Find related papers by JEL classification:
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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