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The long-run decline in the share of agricultural and food products in international trade, 1951-2000: a gravity equation approach of its causes

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  • Vicent Pinilla

    ()
    (Department of Applied Economics and Economic History, Faculty of Economics and Business Studies, Universidad de Zaragoza)

  • Raúl Serrano

    ()
    (Department of Business Administration, Faculty of Economics and Business Studies, Universidad de Zaragoza)

Abstract

The objective of this study is to determine the causes of the loss of share of agricultural products and food in international trade. The article compares, using a gravity model, the impact of various factors upon bilateral trade in agricultural products, in manufactures and in total trade, between 1963 and 2000 for a representative sample of 40 countries. The results clearly demonstrate how the low demand elasticity for agricultural products and food, the high degree of protectionism to which they were subjected and their meagre share in intra-industrial trade are the principal causes of their relatively slow growth.

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Bibliographic Info

Paper provided by Sociedad Española de Historia Agraria in its series Documentos de Trabajo de la Sociedad Española de Historia Agraria with number 1002.

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Length: 31 pages
Date of creation: May 2010
Date of revision:
Handle: RePEc:seh:wpaper:1002

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Related research

Keywords: Home market effect; Agri-food trade; GATT; Regional trade agreements; International Trade; Gravity model; Homogenous products;

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  1. Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72.
  2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc.
  3. Jarko Fidrmuc, 2004. "The core and periphery of the world economy," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 13(1), pages 89-106.
  4. Donald R. Davis & David E. Weinstein, 1998. "Market Access, Economic Geography and Comparative Advantage: An Empirical Assessment," Harvard Institute of Economic Research Working Papers 1850, Harvard - Institute of Economic Research.
  5. Aitken, Norman D, 1973. "The Effect of the EEC and EFTA on European Trade: A Temporal Cross-Section Analysis," American Economic Review, American Economic Association, vol. 63(5), pages 881-92, December.
  6. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
  7. Deardorff, Alan V., 1984. "Testing trade theories and predicting trade flows," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 10, pages 467-517 Elsevier.
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