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The Role of Trade-in-Tasks For the Competitiveness of the European Pig Industry

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  • Hess, Sebastian

Abstract

The global trend of agro-industrialisation is increasingly transforming farms and firms into specialist component suppliers within a multi-stage food processing chain. The trade-in-tasks theory predicts in this context that declining costs for cross-country outsourcing of certain stages of the production process (tasks) generates intra-industry trade and may increase the competitiveness of the final product. Based on this theory, a conceptual framework was established and empirically applied to the EU27 pig industry. The results suggest that the average EU country could increase the competitiveness of its processed meat exports; one potential source of these gains can be structural change among pig farms in other EU countries, which is utilized through vertical intra-industry trade in live pigs. In contrast, changes in outsourcing costs since 2002 due to changes in EU membership or due to the adoption of the Euro appeared non-significant in panel regressions.

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  • Hess, Sebastian, 2014. "The Role of Trade-in-Tasks For the Competitiveness of the European Pig Industry," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187438, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi14:187438
    DOI: 10.22004/ag.econ.187438
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    References listed on IDEAS

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    Keywords

    Livestock Production/Industries;

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