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Does agricultural trade affect productivity? Evidence from Chilean farms

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  • Fleming, David A.
  • Abler, David G.

Abstract

This paper analyzes the relationship between trade and agricultural productivity in Chile, a middle-income country with a recent noticeable history of agricultural trade. This study uses an agricultural commodity trade exposure index in a cross-sectional analysis of more than 70,000 farms to study the relationship between the trade exposure of agricultural commodities and the yields reported by these farms in the 1997 Chilean agricultural census. In order to capture both import and export exposure we subdivide farms in two groups, according to the Chilean case: farms producing only importables such as grains (traditional crops), and farms producing both traditional crops and non-traditional agricultural commodities (products more related to export markets). We exclude from our analysis farms producing only non-traditional products because the census only reports yields for traditional crops. We employ a switching regression model to analyze the effects of trade exposure on traditional crop yields for both groups of farms. Results show that the trade exposure index is positively related to farm yields for both groups, but with a larger effect on farmers producing both traditional and non-traditional commodities. These results are important because they suggest that spillovers from both importables and exportables produce gains in the productivity of traditional crops.

Suggested Citation

  • Fleming, David A. & Abler, David G., 2013. "Does agricultural trade affect productivity? Evidence from Chilean farms," Food Policy, Elsevier, vol. 41(C), pages 11-17.
  • Handle: RePEc:eee:jfpoli:v:41:y:2013:i:c:p:11-17
    DOI: 10.1016/j.foodpol.2013.04.004
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    References listed on IDEAS

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    Cited by:

    1. Juan Soto & Milena Vargas & Julio A. Berdegué, 2018. "How Large Are the Contributions of Cities to the Development of Rural Communities? A Market Access Approach for a Quarter Century of Evidence from Chile," Documentos de Trabajo LACEA 017060, The Latin American and Caribbean Economic Association - LACEA.
    2. Wainaina, Priscilla W. & Okello, Julius J. & Nzuma, Jonathan M., 2014. "Blessing or Evil? Contract Farming, Smallholder Poultry Production and Household Welfare in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(4), pages 1-22, November.
    3. Fleming, David & Komarek, Timothy & Partridge, Mark & Measham, Thomas, 2015. "The Booming Socioeconomic Impacts of Shale: A Review of Findings and Methods in the Empirical Literature," MPRA Paper 68487, University Library of Munich, Germany.
    4. Haqiqi, Iman & Hertel, Thomas W., 2016. "Decomposing Irrigation Water Use Changes in Equilibrium Models," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236185, Agricultural and Applied Economics Association.
    5. Jianxu Liu & Mengjiao Wang & Li Yang & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries," Sustainability, MDPI, Open Access Journal, vol. 12(12), pages 1-1, June.
    6. Sebastian Lakner & Thelma Brenes‐Muñoz & Bernhard Brümmer, 2017. "Technical Efficiency in Chilean Agribusiness Industry: A Metafrontier Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 302-323, June.
    7. Losilla Solano, Luis Vinicio & Brümmer, Bernhard & Engler, Alejandra & Otter, Verena, 2019. "Effects of intra- and inter-regional geographic diversification and product diversification on export performance: Evidence from the Chilean fresh fruit export sector," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    8. Nie, Fei & Li, Jian & Bi, Xiang, 2020. "Agricultural Trade Liberalization and Domestic Fertilizer Use: Evidence from a Natural Experiment in China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304213, Agricultural and Applied Economics Association.

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