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The Factor Content of Heterogeneous Firm Trade

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  • d’Artis Kancs
  • Pavel Ciaian

Abstract

In this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate cross- country di§erences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade, we find that the first two hypotheses are confirmed by the ma jority of the developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organisation, both hypotheses are confirmed by the ma jority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organisation in the CEE.
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  • d’Artis Kancs & Pavel Ciaian, 2012. "The Factor Content of Heterogeneous Firm Trade," The World Economy, Wiley Blackwell, vol. 35(3), pages 373-393, March.
    • Handle: RePEc:bla:worlde:v:35:y:2012:i:3:p:373-393
    DOI: j.1467-9701.2011.01361.x
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    File URL: http://hdl.handle.net/10.1111/j.1467-9701.2011.01361.x
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    Cited by:

    1. Ben Fradj, Nosra & Jayet, Pierre Alain & Rozakis, Stelios & Georganta, Eleni & Jędrejek, Anna, 2020. "Contribution of agricultural systems to the bioeconomy in Poland: Integration of willow in the context of a stylised CAP diversification," Land Use Policy, Elsevier, vol. 99(C).
    2. Victor Rivas, 2012. "Structural Estimation of Variety Gains from Trade Integration in a Heterogeneous Firms Framework," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 55(2), pages 78-93.
    3. Pavel Ciaian & d'Artis Kancs & Dusan Drabik, 2016. "Land Markets in Europe: Institutions and Market Outcomes," EERI Research Paper Series EERI RP 2016/10, Economics and Econometrics Research Institute (EERI), Brussels.

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