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Do Trade Agreements Increase Food Trade?

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  • Mujahid, Irfan
  • Kalkuhl, Matthias

Abstract

In addition to multilateral trade agreements under the World Trade Organization (WTO), the world has seen a remarkable proliferation of regional trade agreements (RTAs) in the last two decades. This study investigates the impacts of these multilateral and regional trade institutions on food trade. The Gravity model of international trade is used for the empirical analysis. The model is developed in a large panel data setting and attempted to address some potential problems in the estimation including multilateral trade resistances, zero trade values and endogeneity. The results suggest that both the WTO and RTAs have delivered significant positive effects on trade, but only RTAs are found to have succeeded in increasing food trade among the members. However, although on average the WTO has negative implications on food trade, it has facilitated the developing countries more than the developed countries.

Suggested Citation

  • Mujahid, Irfan & Kalkuhl, Matthias, 2014. "Do Trade Agreements Increase Food Trade?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170159, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:170159
    DOI: 10.22004/ag.econ.170159
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    Cited by:

    1. Mathias Juust & Priit Vahter & Urmas Varblane, 2017. "The Trade Effects Of The Eu-South Korea Free Trade Agreement In The Automotive Industry," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 105, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Tiziano Distefano & Francesco Laio & Luca Ridolfi & Stefano Schiavo, 2017. "Shock transmission in the International Food Trade Network. A Data-driven Analysis," SEEDS Working Papers 0617, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2017.
    3. Matthias Kalkuhl & Lukas Kornher & Matthias Kalkuhl & Irfan Mujahid, 2015. "Food price volatility in developing countries – the role of trade and storage," EcoMod2015 8415, EcoMod.
    4. Risti Permani, 2021. "FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 192-221, January.
    5. Sylvanus Kwaku Afesorgbor & Dela‐Dem Doe Fiankor & Binyam Afewerk Demena, 2024. "Do regional trade agreements affect agri‐food trade? Evidence from a meta‐analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 737-759, June.
    6. Pablo Delgado & Vicente Pinilla & Ignacio Belloc, 2025. "From net importer to global leader: understanding the drivers of Spain’s meat export growth since the 1960s," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 19(2), pages 487-519, May.
    7. Jafari, Yaghoob & Engemann, Helena & Zimmermann, Andrea, 2023. "Food trade and regional trade agreements – A network perspective," Food Policy, Elsevier, vol. 119(C).
    8. Rodolfo Campos & Mario Larch & Jacopo Timini & Elena Vidal & Yoto Yotov, 2024. "Does the WTO Promote Trade? A Meta-analysis," School of Economics Working Paper Series 2024-11, LeBow College of Business, Drexel University.
    9. Timsina, Krishna P. & Culas, Richard J., . "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3).
    10. Kim, Dongin & Steinbach, Sandro & Zurita, Carlos, 2024. "Deep trade agreements and agri-food global value chain integration," Food Policy, Elsevier, vol. 127(C).
    11. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.
    12. Shadrack Muthami Mwatu & Charity Kageni Mbaka & John Gakuu Karanja & Grace Mukami Muriithi, 2024. "Trade Agreements, Technical Regulations, and Standards: Competitiveness Implications for Kenyan Exporters to European Union," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(2), pages 381-410, April.

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