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Price, Quality and Trade Costs in the Food Sector

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  • Curzi, Daniele
  • Pacca, Lucia

Abstract

Recent developments in international trade theory have placed growing emphasis on the quality of products, showing that it affects countries’ export performances. However, as quality is unobservable, a measurement problem emerges. In this paper we apply some of the most recent methods to estimate quality of traded products. We focus on the food sector, where the growing attention on quality and safety issues is leading to an increase in the demand for high quality products. In the first part of our empirical analysis, we investigate the properties of the estimated qualities. We find that, in contrast with what often is assumed in the literature, quality and prices are imperfectly correlated. The second empirical section is dedicated to the study of the relationship between price vs. quality and trade costs. It emerges that the price and the quality of food exports are influenced differently by ad valorem and specific trade costs.

Suggested Citation

  • Curzi, Daniele & Pacca, Lucia, 2015. "Price, Quality and Trade Costs in the Food Sector," 2015 Conference, August 9-14, 2015, Milan, Italy 211554, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:211554
    DOI: 10.22004/ag.econ.211554
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    2. Charlotte Emlinger & Viola Lamani, 2020. "International trade, quality sorting and trade costs: the case of Cognac," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 579-609, August.
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    8. Dela‐Dem Fiankor & Fabio G. Santeramo, 2023. "Revisiting the impact of per‐unit duties on agricultural export prices," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1472-1492, September.
    9. Xia Tong & Wei Ding & Zhanfei Huang & Yutong Gu, 2024. "Governance mechanism of quality and safety of imported agricultural products in China based on grounded theory," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
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    12. Kossi Messanh Agbekponou & Ilaria Fusacchia, 2023. "Global value chains' position and value capture: Firm evidence in agri-food industry," Post-Print hal-04321612, HAL.
    13. Kexuan Zhou & Sanjay Kumar & Futao Lu & Qiaoyun Fang & Linhui Yu, 2022. "Has the Belt and Road Initiative Improved the Quality of Food Imported by Chinese Enterprises?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(2), pages 60-83, March.
    14. Ridley, William & Luckstead, Jeff & Devadoss, Stephen, 2022. "Wine: The punching bag in trade retaliation," Food Policy, Elsevier, vol. 109(C).
    15. Traoré, Ousmane Z & Tamini, Lota D., 2020. "The Net Effect of the Technical Non-Tariff Measures in OECD countries on African Exports of Plant Products," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304460, Agricultural and Applied Economics Association.
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    20. Kamal, Mustafa & Blacklow, Paul, 2021. "Attitudes to gender and personality in the Australian gender wage gap," Working Papers 2021-07, University of Tasmania, Tasmanian School of Business and Economics.
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    Keywords

    Food Consumption/Nutrition/Food Safety; International Relations/Trade;

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