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Regional Production Adjustment to Import Competition: Evidence from the French Agro-Industry

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  • Corinne Bagoulla
  • Emmanuelle Chevassus-Lozza
  • Karine Daniel
  • Carl Gaigné

Abstract

This paper evaluates the impact of increasing imports on the reallocation of agrifood production across regions within countries. From French data for the period 1995--2002, we show that regional agrifood production adjusts differently to increasing imports according to the region where the agrifood firms are located. Even though proximity to consumers is important, an increase in agrifood imports does not increase agrifood production with a high demand but makes low-wage regions more attractive. In addition, an increase in imports of agricultural products processed by agrifood firms leads to the reallocation of agrifood production away from regions with good agricultural access and toward those with limited access to agricultural products. Copyright 2010, Oxford University Press.

Suggested Citation

  • Corinne Bagoulla & Emmanuelle Chevassus-Lozza & Karine Daniel & Carl Gaigné, 2010. "Regional Production Adjustment to Import Competition: Evidence from the French Agro-Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1040-1050.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:4:p:1040-1050
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq053
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    Cited by:

    1. Chevassus-Lozza, Emmanuelle & Gaigné, Carl & Le Mener, Léo, 2013. "Does input trade liberalization boost downstream firms' exports? Theory and firm-level evidence," Journal of International Economics, Elsevier, vol. 90(2), pages 391-402.
    2. GAIGNE, Carl & LAROCHE DUPRAZ, Cathie & MATTHEWS, Alan, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(01), March.
    3. Xiong, Bo & Beghin, John C. & Marette, Stephan, "undated". "Gains to French champagne makers from tariff liberalization," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150003, Agricultural and Applied Economics Association.
    4. Cosnard, Lionel, 2018. "Modeling the emergence of hysteresis in agri-food sectors," Conference papers 332955, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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