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Global productivity distribution and trade liberalisation: evidence from processed food industries

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  • Jun Ruan
  • Munisamy Gopinath

Abstract

In this study, we test the hypothesis that an industry's average productivity increases with liberalised trade in the context of processed food industries. Furthermore, we examine the resulting cross-country resource and market share reallocation in these industries. For this purpose, we employ a kernel density estimator to approximate the global productivity distribution in five major processed food industries for every period between 1993 and 2000. We find that the mean and alternative percentiles of the global productivity distribution shift to the right with liberalised international trade. Moreover, countries with faster productivity growth than the global average benefit from trade liberalisation by acquiring a larger share of global markets and resources. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

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  • Jun Ruan & Munisamy Gopinath, 2008. "Global productivity distribution and trade liberalisation: evidence from processed food industries," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(4), pages 439-460, December.
  • Handle: RePEc:oup:erevae:v:35:y:2008:i:4:p:439-460
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    Cited by:

    1. Daniele Curzi & Lucia Pacca & Alessandro Olper, 2013. "Estimating Food Quality from Trade Data: An Empirical Assessment," LICOS Discussion Papers 33913, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Curzi, Daniele & Raimondi, Valentina & Olper, Alessandro, 2013. "Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152387, International Agricultural Trade Research Consortium.
    3. Olper, Alessandro & Pacca, Lucia & Curzi, Daniele, 2014. "Trade, import competition and productivity growth in the food industry," Food Policy, Elsevier, pages 71-83.
    4. Olper, Alessandro & Curzi, Daniele & Raimondi, Valentina, 2015. "Import Penetration, Intermediate Inputs and Firms’ Productivity in the EU Food Industry," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207844, Italian Association of Agricultural and Applied Economics (AIEAA).
    5. Luljeta Hajderllari & Kostas Karantininis & Lartey G. Lawson, 2012. "FDI as an Export-Platform: A Gravity Model for the Danish Agri-Food Industry," IFRO Working Paper 2012/7, University of Copenhagen, Department of Food and Resource Economics.
    6. Thuyen, Truong Thi Ngoc & Jongwanich, Juthathip & Ramstetter, Eric D., 2014. "Productivity spillovers from foreign multinationals and trade policy: firm-level analysis of Vietnamese manufacturing," AGI Working Paper Series 2014-10, Asian Growth Research Institute.
    7. Luckstead, Jeff & Devadoss, Stephen, 2015. "Impacts of TTIP on Processed Food Trade under Monopolistic Competition and Firm Heterogeneity," 2016 Allied Social Science Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212817, Agricultural and Applied Economics Association.

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