IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE - Vantaggi comparati, costi di transazione e contenuto dei fattori nel commercio agricolo: evidenze empiriche dai paesi dell’Europa centro-orientale

  • Ciaian, Pavel

    ()

    (European Commission (DG Joint Research Centre IPTS), Economics and Econometrics Research Institute (EERI), and Catholic University of Leuven (LICOS))

  • Kancs, d'Artis

    ()

    (European Commission (DG Joint Research Centre IPTS), Catholic University of Leuven (LICOS), and Economics and Econometrics Research Institute (EERI))

  • Pokrivcak, Jan

    ()

    (Slovenská Polnohospodárska Univerzita (SAU), and Economics and Econometrics Research Institute (EERI))

The paper studies the determinants of the factor content in the EU foreign trade. The theoretical model relaxes several important assumptions such as factor price equalisation and introduces technological differences in the standard Heckscher-Ohlin model. Based on the agricultural production and trade data for the Central and East European (CEE) EU member states, we examine empirically three hypothesis, which relate cross-country differences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade, we find that the first two hypotheses are confirmed by the majority of the developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organisation, both hypotheses are confirmed by the majority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organisation in the CEE.- Questo lavoro esamina le determinanti del contenuto dei fattori nel commercio estero dell’Unione Europea. Il modello teorico tralascia postulati importanti come l’equalizzazione del fattore prezzo e introduce differenze tecnologiche nel modello standard Heckscher-Ohlin. Basandosi sui dati della produzione agricola e del commercio dei paesi comunitari dell’Europa centroorientale, lo studio esamina empiricamente tre ipotesi che mettono in relazione le differenze cross-country nella tecnologia, l’abbondanza relativa dei fattori, i costi di transazione e le imperfezioni del mercato con il contenuto dei fattori del commercio. Si riscontra che le prime due ipotesi sono confermate per la maggioranza dei paesi UE sviluppati, mentre per circa la metà dei paesi comunitari in transizione dell’Europa centro-orientale devono essere rifiutate. Inoltre, spiegando i costi di transazione della riorganizzazione agricola, si riscontra che entrambe le ipotesi sono confermate per la maggioranza delle coppie di paesi comunitari dell’Europa centro-orientale. Questi riscontri forniscono evidenze empiriche di imperfezioni del mercato e, in particolare, dei costi di transazione della (ri)organizzazione agricola nell’Europa comunitaria centro-orientale.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.

Volume (Year): 64 (2011)
Issue (Month): 1 ()
Pages: 67-101

as
in new window

Handle: RePEc:ris:ecoint:0609
Contact details of provider: Postal:
Via Garibaldi 4, 16124 Genova, Italy

Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.ge.camcom.it/IT/Tool/Modulistica
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Dermot J. Hayes & Alexander Kumi & Stanley R. Johnson, 1994. "Trade Impacts of Soviet Reform: A Heckscher-Ohlin-Vanek Approach," Center for Agricultural and Rural Development (CARD) Publications 94-gatt19, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. Timo Mitze, 2010. "Estimating Gravity Models of International Trade with Correlated Time-Fixed Regressors: To IV or not IV?," EERI Research Paper Series EERI_RP_2010_22, Economics and Econometrics Research Institute (EERI), Brussels.
  3. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
  4. d'Artis Kancs & Pavel Ciaian, 2008. "Factor Content of Agricultural Trade," EERI Research Paper Series EERI_RP_2008_05, Economics and Econometrics Research Institute (EERI), Brussels.
  5. Donald R. Davis & David E. Weinstein, 1998. "An Account of Global Factor Trade," Harvard Institute of Economic Research Working Papers 1849, Harvard - Institute of Economic Research.
  6. BAUWENS, Luc & ROMBOUTS, Jeroen V.K., . "Econometrics," CORE Discussion Papers RP 1713, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Rombouts, Jeroen V. K. & Bauwens, Luc, 2004. "Econometrics," Papers 2004,33, Humboldt-Universität Berlin, Center for Applied Statistics and Economics (CASE).
  7. Lee, Chinkook & Wills, Darryl & Schluter, Gerald, 1988. "Examining the leontief paradox in U.S. agricultural trade," Agricultural Economics, Blackwell, vol. 2(3), pages 259-272, November.
  8. Lerman, Zvi & Csaki, Csaba & Feder, Gershon, 2002. "Land policies and evolving farm structures in transition countries," Policy Research Working Paper Series 2794, The World Bank.
  9. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
  10. Werner Antweiler & Daniel Trefler, 2002. "Increasing Returns and All That: A View from Trade," American Economic Review, American Economic Association, vol. 92(1), pages 93-119, March.
  11. Peter K. Schott, 2001. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production," NBER Working Papers 8244, National Bureau of Economic Research, Inc.
  12. Bowen, Harry P & Leamer, Edward E & Sveikauskas, Leo, 1987. "Multicountry, Multifactor Tests of the Factor Abundance Theory," American Economic Review, American Economic Association, vol. 77(5), pages 791-809, December.
  13. Uwe Dulleck & Neil Foster, 2004. "Why Transition Countries May Specialize in Low-Quality Production," Transition Studies Review, Springer, vol. 11(3), pages 114-124, December.
  14. Michael A. Landesmann & Robert Stehrer, 2002. "Evolving Competitiveness of CEEC’s in an Enlarged Europe," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 23-88, January-F.
  15. Leamer, Edward E. & Levinsohn, James, 1995. "International trade theory: The evidence," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 26, pages 1339-1394 Elsevier.
  16. Debeare, Peter, 2003. "Relative Factor Abundance and Trade," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 589-610, June.
  17. Lerman, Z. & Brooks, K. & Csaki, C., 1994. "Land Reform and Fram Restructuring in Ukraine," World Bank - Discussion Papers 270, World Bank.
  18. Keith Head & John Ries, 2001. "Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade," American Economic Review, American Economic Association, vol. 91(4), pages 858-876, September.
  19. Abdul Rashid & Tayyaba Razzaq, 2010. "Estimating Import-Demand Function in ARDL Framework," EERI Research Paper Series EERI_RP_2010_15, Economics and Econometrics Research Institute (EERI), Brussels.
  20. Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(3-4), pages 443-58.
  21. Deardorff, Alan V., 1984. "Testing trade theories and predicting trade flows," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 10, pages 467-517 Elsevier.
  22. Yong_Seok Choi & Pravin Krishna, 2000. "The Factor Content of Bilateral Trade:an Empirical Test," Working Papers 2000-11, Brown University, Department of Economics.
  23. Mathijs, Erik & Swinnen, Johan F M, 1998. "The Economics of Agricultural Decollectivization in East Central Europe and the Former Soviet Union," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 1-26, October.
  24. Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2008. "Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44135, European Association of Agricultural Economists.
  25. Neven, Damien, 1995. "Trade liberalisation with Eastern nations: Some distribution issues," European Economic Review, Elsevier, vol. 39(3-4), pages 622-632, April.
  26. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
  27. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-87, December.
  28. G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
  29. Karel Janda & Daniel Münich, 2004. "The Intra-Industry Trade of the Czech Republic in the Economic Transition," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 40(2), pages 27-50, March.
  30. d'Artis Kancs, 2007. "Trade Growth in a Heterogeneous Firm Model: Evidence from South Eastern Europe," The World Economy, Wiley Blackwell, vol. 30(7), pages 1139-1169, 07.
  31. Schluter, Gerald E. & Lee, Gene K., 1978. "Is Leontief'S Paradox Applicable To U.S. Agricultural Trade?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 3(02), December.
  32. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-94, September.
  33. Peter Egger & Michael Pfaffermayr & Roland Schmidt, 2007. "Trade in Western and Eastern Europe in the aftermath of COMECON: an assessment of behavioral change," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 102-126, January.
  34. Leamer, Edward E, 1980. "The Leontief Paradox, Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 495-503, June.
  35. Lai, Huiwen & Zhu, Susan Chun, 2007. "Technology, endowments, and the factor content of bilateral trade," Journal of International Economics, Elsevier, vol. 71(2), pages 389-409, April.
  36. Pavel Ciaian & Johan F.M. Swinnen, 2006. "Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 799-815.
  37. Salem M. Abo-Zaid, 2010. "Sticky Wages, Incomplete Pass-Through and Inflation Targeting: What is the Right Index to Target?," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(1), pages 28-58.
  38. Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2011. "Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE - Vantaggi comparati, costi di transazione e contenuto dei fattori nel commercio agr," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 64(1), pages 67-101.
  39. d’Artis Kancs & Gerald Weber, 2001. "Modelling Agricultural Policies in the CEE Accession Countries," EERI Research Paper Series EERI_RP_2001_02, Economics and Econometrics Research Institute (EERI), Brussels.
  40. Julia W�Rz, 2005. "Dynamics of Trade Specialization in Developed and Less Developed Countries," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 41(3), pages 92-111, May.
  41. Pollak, Robert A, 1985. "A Transaction Cost Approach to Families and Households," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 581-608, June.
  42. Ian Sheldon & Matthew Roberts, 2008. "U.S. Comparative Advantage in Bioenergy: A Heckscher-Ohlin-Ricardian Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1233-1238.
  43. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December.
  44. Leamer, Edward E, 1987. "Paths of Development in the Three-Factor, n-Good General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 961-99, October.
  45. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
  46. Stefan Bojnec & Imre Fertő, 2008. "European Enlargement and Agro-Food Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 563-579, December.
  47. Jarko Fidrmuc, 2005. "Trade Structure during Accession to the EU," Post-Communist Economies, Taylor & Francis Journals, vol. 17(2), pages 225-234.
  48. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 26(2), November.
  49. Pavel Ciaian & Jan Pokrivcak & Dusan Drabik, 2009. "Transaction costs, product specialisation and farm structure in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 21(2), pages 191-201.
  50. Imre Fertö, 2005. "Vertically Differentiated Trade and Differences in Factor Endowment: The Case of Agri-Food Products between Hungary and the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 117-134.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0609. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Procopio)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.