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The impact of EU trade preferences on the extensive and intensive margins of agricultural and food products

Author

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  • Margherita Scoppola

    (University of Macerata)

  • Valentina Raimondi

    (University of Milan)

  • Alessandro Olper

    (University of Milan)

Abstract

In this paper we study the trade creation effects of EU preferential trade agreements (PTAs) in the agriculture and food sectors for a large sample of developing countries in the period 1990-2006. We investigate the extent to which the PTAs affect trade through the extensive\textemdash number of exported products - or the intensive margin - volume of existing products. We use a gravity framework in a panel data setting, and different estimators to deal with the issues of zero trade flows and with the presence of an upper bound in the dependent variable. The results show that EU PTAs positively affect the extensive margin in agricultural trade, but not in processed foods. As regards the intensive margin, the effect is driven by the role of tariffs alone, while the other provisions of PTAs do not exert any other significant impact on agricultural or food products.

Suggested Citation

  • Margherita Scoppola & Valentina Raimondi & Alessandro Olper, 2017. "The impact of EU trade preferences on the extensive and intensive margins of agricultural and food products," Working Papers 51-2017, Macerata University, Department of Studies on Economic Development (DiSSE), revised Dec 2017.
  • Handle: RePEc:mcr:wpaper:wpaper00051
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    Cited by:

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    2. Ghazalian, Pascal L. & Mosadegh Sedghy, Bahareh, 2019. "Changes in Canada’s Preferential Trade Network and the Welfare Effects in Agricultural Markets," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 20(1), June.
    3. Maria Cipollina & Luca Salvatici, 2019. "The Trade Impact of EU Tariff Margins: An Empirical Assessment," Social Sciences, MDPI, Open Access Journal, vol. 8(9), pages 1-15, September.
    4. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(9), pages 1-20, September.
    5. Marie M Stack & Rob Ackrill & Martin Bliss, 2019. "Sugar trade and the role of historical colonial linkages," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 46(1), pages 79-108.
    6. Beghin, John C. & Schweizer, Heidi, 2020. "Agricultural Trade Costs," Staff Papers 304761, University of Nebraska-Lincoln, Department of Agricultural Economics.
    7. Jean-Christophe Bureau & Jo Swinnen, 2017. "EU policies and global food security," Working Papers of Department of Economics, Leuven 578549, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    8. Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    9. McDougall, Brendan S. & Afesorgbor, Sylvanus Kwaku, 2020. "The Effect of Free Trade Agreements on the Intensive and Extensive Margins of Canadian Agri-Food Trade," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304486, Agricultural and Applied Economics Association.
    10. Lota Tamini & Aristide B. Valéa, 2019. "Innovation Activities and Export Performance of Canadian Small and Medium-Sized Agri-Food Firms," CIRANO Working Papers 2019s-09, CIRANO.
    11. Fabio Gaetano Santeramo & Valentina Guerrieri & Emilia Lamonaca, 2018. "On the Evolution of Trade and Sanitary and Phytosanitary Standards: The Role of Trade Agreements," Agriculture, MDPI, Open Access Journal, vol. 9(1), pages 1-15, December.
    12. Fiankor, Dela-Dem Doe & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2018. "Exports and governance: the role of private voluntary standards," GlobalFood Discussion Papers 275059, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    13. Ferto, Imre, 2018. "Extensive and intensive margins of agri-food trade in the EU," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273496, Agricultural Economics Society.

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    More about this item

    Keywords

    Gravity equation; EU trade preferences; Developing countries; Extensive/intensive margins;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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