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Quality And Prices Of Intra-European Trade Of Food-Industry Products

Listed author(s):
  • Andrés Picazo

    (Universidad de Alicante)

  • Ernest Reig Martínez

    (Instituto Valenciano de Investigaciones Económicas)

The completion of the European Single Market should bring out an exploitation of comparative advantages in production and trade. It is usually assumed that, given the predominance of intraeuropean trade flows in the global import figures of the European Union, efficiency gains from trade creation could be potentially important. However, the analysis of the effects of the Single Market on trade specialisation with a greater degree of accuracy requires trade quality indicators to be available. This paper uses the theory of index numbers to establish the relative quality levels of the food industry shipments to the European Internal Market from European Union member countries. It is found a positive relationship between the evolution of country shares on the European food in-dustry and the ability to achieve growing quality levels in the composition of export flows. Finally, intraeuropean food industry trade is analysed accordingly to the pattern of specialisation adopted. La conclusión del Mercado Único Europeo debería traer consigo una explotaciónde las ventajas comparativas en la producción y el comercio. Se supone habitualmenteque, dada la predominancia de flujos comerciales intraeuropeos en las cifras globales deimportación de la Unión Europea, las ganancias de eficiencia derivadas de la creación decomercio podrían ser potencialmente importantes. Sin embargo, un análisis máscuidadoso de los efectos del Mercado Único sobre la especialización comercial requierede la disponibilidad de indicadores de comercio relativos a la calidad. Este artículoutiliza la teoría de los números índice para establecer los niveles de calidad relativa delos envíos de la industria alimentaria al Mercado Interno Europeo desde los paíseseuropeos miembros de Unión. Se encuentra una relación positiva entre la evolución dela participación relativa de un país en la industria alimentaria europea y la capacidadpara lograr niveles crecientes de calidad en la composición de los flujos de exportación.Finalmente, se analiza el comercio intraeuropeo de la industria alimentaria teniendo encuenta el modelo de especialización adoptado.

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File Function: Fisrt version / Primera version, 2000
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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2000-15.

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Length: 22 pages
Date of creation: Oct 2000
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2000-15
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