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Patterns and Determinants of International Trade Costs in the Food Industry

  • Alessandro Olper
  • Valentina Raimondi

"This paper documents patterns in international trade costs in processed foods for a large cross-section of developing and developed countries, during the 1976-2000 period. A trade costs index is inferred from a micro-founded gravity equation that incorporates bilateral 'iceberg' trade costs. For 2000, the trade costs, expressed as weighted average tariff equivalent, range from 73% for the north to 134% for the south countries. The time patterns show an average reduction of about 13% in the observed period that rises to 26% for the emerging countries. However, the same does not occur for south countries. On ranking the trade costs determinants, we find that, on average, geographical and historical factors seem to dominate those of infrastructure and institutions. However, trade policy emerges as an important determinant of the trade costs between north and emerging countries." Copyright (c) 2008 The Authors. Journal compilation (c) 2008 The Agricultural Economics Society.

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Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 60 (2009)
Issue (Month): 2 ()
Pages: 273-297

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Handle: RePEc:bla:jageco:v:60:y:2009:i:2:p:273-297
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  1. de Sousa, José & Mayer, Thierry & Zignago, Soledad, 2012. "Market Access in Global and Regional Trade," CEPR Discussion Papers 9085, C.E.P.R. Discussion Papers.
  2. Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1401-1430, November.
  3. Alessandro Olper & Valentina Raimondi, 2007. "Market access asymmetry in food trade," LICOS Discussion Papers 18707, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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  12. Arnim Kuhn, 2005. "A CGE analysis of trade costs in the Russian agrofood sector," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 79-90, 07.
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