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Changing Patterns of Trade in Processed Agricultural Products

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  • Pete Liapis
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    Abstract

    Trade in processed products, such as chocolates, steaks or wines, is dominated by high income OECD countries, although it is slowing down between these countries while growing very fast between emerging economies. Low income countries, however, account for a small share of such trade. Countries with a revealed comparative advantage in the processed agricultural markets are mostly high income countries and capture the majority of the trade, while many low income countries have a comparative advantage for other agricultural products. This study describes the patterns of trade, examines which countries have a comparative advantage and how this may have changed over time, analyses the level of productivity of countries’ export basket and its contribution to income, and determines whether trade has increased at the extensive or intensive margins. This study uses the gravity framework to gain a better understanding of the underlying factors for the international trade of products.

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    File URL: http://dx.doi.org/10.1787/5kgc3mq19s6d-en
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Food, Agriculture and Fisheries Papers with number 47.

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    Date of creation: 24 Jun 2011
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    Handle: RePEc:oec:agraaa:47-en

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    Keywords: agricultural trade; trade facilitation; tariffs; comparative advantage; processed agricultural products; PRODY; EXPY; gravity framework; extensive margin;

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