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Heterogeneous firms and homogenising standards in agri-food trade: the Polish meat case

  • Marie-Luise Rau
  • Frank van Tongeren

A partial equilibrium trade model with heterogeneous firms is developed and applied to the issue of compliance with the EU food standards in Polish meat production. The model parameters are estimated using a nonlinear least squares method to match the observed patterns of trade. With asymmetrically distributed productivities homogenising standards tend to increase the concentration of production and exports among the more productive and larger firms. Simulation analysis shows the trade and market structure impacts of support programmes in the context of EU accession. The simulations also highlight the importance of the substitution elasticity between varieties and effects of productivity upgrades. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/erae/jbp032
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Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 36 (2009)
Issue (Month): 4 (December)
Pages: 479-505

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Handle: RePEc:oup:erevae:v:36:y:2009:i:4:p:479-505
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  1. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
  2. Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2008. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," Department of Economics - Working Papers Series 1056, The University of Melbourne.
  3. Bokusheva, Raushan & Buchenrieder, Gertrud, 2006. "Contributions to the 4th young scientists workshop on agricultural development in Central and Eastern Europe," IAMO Discussion Papers 98, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  4. Marie-Luise Rau & Frank van Tongeren, 2007. "Modeling differentiated quality standards in the agri-food sector: the case of meat trade in the enlarged EU," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 305-315, 09.
  5. Chevassus-Lozza, Emmanuelle & Latouche, Karine & Majkovic, Darja, 2007. "How Much do Non-Tariff Measures Explain the Border Effect at Entry to the EU Market? The CEECs Agri-Food Exports to EU in the Pre-Accession Period," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9852, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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