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Determinants of Structural Changes of Food Exports from Developing Countries

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  • Jongwanich, Juthathip

    (Asian Development Bank)

  • Magtibay-Ramos, Nedelyn

    (Asian Development Bank)

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    Abstract

    Over the past three decades, there has been a rapid expansion of processed food exports in developing countries, replacing traditional agriculture exports such as coffee and tea. However, this development and its policy implications have received little attention in the literature. This paper aims to redress this oversight by providing an overview of key characteristics and growth patterns of processed food exports in developing countries. The determinants of structural changes toward processed food exports in developing countries are examined using panel data econometric analysis. The results suggests that trade policy openness, large domestic market, good macroeconomic management especially in terms of price stability, as well as adequate financial support and infrastructure are the key factors that influence the structural changes toward processed food products.

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    File URL: http://www.adb.org/Documents/Working-Papers/2009/Economics-WP166.pdf
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    Bibliographic Info

    Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 166.

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    Length: 41 pages
    Date of creation: Jul 2009
    Date of revision:
    Handle: RePEc:ris:adbewp:0166

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    Keywords: Food Safety Standards; Processed food trade; developing countries;

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    1. Prema-Chandra Athukorala & Kunal Sen, 1996. "Processed Food Exports from Developing Countries: Patterns and Determinants," Trade and Development 96/14, Australian National University, Department of Economics.
    2. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    3. Regmi, Anita & Gehlhar, Mark J. & Wainio, John & Vollrath, Thomas L. & Johnston, Paul V. & Kathuria, Nitin, 2005. "Market Access For High-Value Foods," Agricultural Economics Reports 33999, United States Department of Agriculture, Economic Research Service.
    4. Prema-chandra Athukorala & Sisira Jayasuriya, 2003. "Food Safety Issues, Trade and WTO Rules: A Developing Country Perspective," Departmental Working Papers 2003-13, The Australian National University, Arndt-Corden Department of Economics.
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