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Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries

Author

Listed:
  • Eum Jihyun

    (Bank of Korea, Seoul, Korea)

  • Sheldon Ian

    (Department of Agricultural, Environmental, and Development Economics, The Ohio State University, Columbus, OH 43210, USA)

  • Thompson Stanley

    (Department of Agricultural, Environmental, and Development Economics, The Ohio State University, Columbus, OH 43210, USA)

Abstract

In this article, the reasons why developing countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the results show that systematically, asymmetric bilateral trade costs and variation in the level of agricultural productivity across all countries in the sample, are the main barriers to developing countries’ agricultural exports. In addition, low-income countries face higher trade costs to export than do high-income countries.

Suggested Citation

  • Eum Jihyun & Sheldon Ian & Thompson Stanley, 2017. "Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 15(2), pages 1-18, December.
    • Handle: RePEc:bpj:bjafio:v:15:y:2017:i:2:p:18:n:4
    DOI: 10.1515/jafio-2017-0035
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    References listed on IDEAS

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    Cited by:

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