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Analyzing Trade Liberalization Effect in the Egg Sector Using a Dynamic Gravity Model

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  • Lota D. Tamini
  • Maurice Doyon
  • Rodrigue Simon

Abstract

This study analyzes the effects of different liberalization scenarios in the international trade of eggs and egg products. We use a dynamic gravity model that takes into account the observed persistence of trading partners. The estimated parameters of the gravity model serve to quantify the impact of various liberalization scenarios on the probability of importing (extensive margin) and on trade volumes (intensive margin). The results indicate that even in the context of aggressive trade liberalization, trade gains at the extensive margin will be modest. Gains at the intensive margin of trade are present even in the context of partial liberalization - Doha type - of trade.

Suggested Citation

  • Lota D. Tamini & Maurice Doyon & Rodrigue Simon, 2012. "Analyzing Trade Liberalization Effect in the Egg Sector Using a Dynamic Gravity Model," Cahiers de recherche CREATE 2012-6, CREATE.
  • Handle: RePEc:lvl:creacr:2012-6
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    Cited by:

    1. Philippidis, G. & Resano, H. & Sanjuán, A.I., 2014. "Shifting Armington trade preferences: A re-examination of the Mercosur–EU negotiations," Economic Modelling, Elsevier, vol. 40(C), pages 21-32.

    More about this item

    Keywords

    Eggs and eggs products; persistence in trade; trade liberalization; gravity model; random-effects dynamic Probit; autoregressive panel;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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