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A critical judgement of the applicability of 'New New Trade Theory' to agriculture: Structural change, productivity, and trade

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  • Prehn, Sören
  • Brümmer, Bernhard

Abstract

The emergence of 'New New Trade Theory' fundamentally changed the thinking of international trade, and it is now at the heart of science. Here, we are going to take up the discussion of Golpinath et al. [2007], looking at whether 'New New Trade Theory' is applicable to agriculture. Revisiting the recent literature, we can find new theoretical and methodological evidence for its importance: the concepts of 'New New Trade Theory' will impact the modelling of structural change in agriculture and of agricultural trade. Farm productivity and agricultural trade cannot be seen anymore as detached from one another; both concepts are interrelated. We claim that 'New New Trade Theory' and its concepts will become standard for agriculture, too.

Suggested Citation

  • Prehn, Sören & Brümmer, Bernhard, 2012. "A critical judgement of the applicability of 'New New Trade Theory' to agriculture: Structural change, productivity, and trade," DARE Discussion Papers 1206, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    • Handle: RePEc:zbw:daredp:1206
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    Cited by:

    1. Martin Cameron & Wilma Viviers & Ezra Steenkamp, 2017. "Breaking the ‘big data’ barrier when selecting agricultural export markets: an innovative approach," Agrekon, Taylor & Francis Journals, vol. 56(2), pages 139-157, April.
    2. Chaoping Xie & Jianfeng Gao & Jason H. Grant & Sven Anders, 2018. "Examining the Canada–China agri‐food trade relationship: Firms, trading partners, and trading volumes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 539-555, December.

    More about this item

    Keywords

    Agriculture Economics; New New Trade Theory; Farm Heterogeneity; Elasticity of Trade Flows; Estimation Methods;
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