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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:

    1. Sapa, Agnieszka & Kryszak, Łukasz, 2021. "Processed Food Trade of European Union Countries – The Gravity Approach," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(2).
    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(01), June.
    3. Kim, Dongin & Steinbach, Sandro & Zurita, Carlos, 2024. "Deep trade agreements and agri-food global value chain integration," Food Policy, Elsevier, vol. 127(C).
    4. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," JRFM, MDPI, 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(1), pages 79-108.
    6. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    7. repec:lic:licosd:39217 is not listed on IDEAS
    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. Ridley, William & Luckstead, Jeff & Devadoss, Stephen, 2022. "Wine: The punching bag in trade retaliation," Food Policy, Elsevier, vol. 109(C).
    10. Sylvanus Kwaku Afesorgbor & Dela‐Dem Doe Fiankor & Binyam Afewerk Demena, 2024. "Do regional trade agreements affect agri‐food trade? Evidence from a meta‐analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 737-759, June.
    11. 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.
    12. Imre Fertő & Zoltán Bakucs & Jan Fałkowski, 2021. "Dairy sector trade dynamics: Some insights on the evolution of trade linkages within the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 698-711, September.
    13. 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.
    14. Janssens, Charlotte & Havlik, Petr & Boere, Esther & Palazzo, Amanda & Mosnier, Aline & Maertens, Miet, 2021. "The African Continental Free Trade Area: Trading Africa into Sustainability?," 2021 Conference, August 17-31, 2021, Virtual 315895, International Association of Agricultural Economists.
    15. Ridley, William & Luckstead, Jeff & Devadoss, Stephen, 2022. "Wine: The punching bag in trade retaliation," Food Policy, Elsevier, vol. 109(C).
    16. 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, vol. 9(1), pages 1-15, December.
    17. Bekkers, Eddy & Cariola, Gianmarco, 2022. "The impact of LDC graduation on trade: A quantitative assessment," WTO Staff Working Papers ERSD-2022-5, World Trade Organization (WTO), Economic Research and Statistics Division.
    18. Federica Demaria & Sophie S. Drogue & Marie-Luise Rau, 2015. "EU preferences for agri-food products from developing countries: winning and losing due to the EU GSP reform 2013," Post-Print hal-02796661, HAL.
    19. Maria Cipollina & Luca Salvatici, 2019. "The Trade Impact of EU Tariff Margins: An Empirical Assessment," Social Sciences, MDPI, vol. 8(9), pages 1-15, September.
    20. Junqian Xu & Yuanyuan Wu, 2018. "A Comparative Study of the Role of Australia and New Zealand in Sustainable Dairy Competition in the Chinese Market after the Dairy Safety Scandals," IJERPH, MDPI, vol. 15(12), pages 1-24, December.
    21. 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.
    22. Berger, Jurij & Brümmer, Bernhard & Fiankor, Dela-Dem & Kopp, Thomas, 2021. "Sugar market policies in the EU and international sugar trade," DARE Discussion Papers 2105, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    23. Berndt, Marvin & Hess, Sebastian, 2024. "Extensive margin effects following the Japan-EU free trade agreement: analysing future developments in the agri-food sector," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 10(4), December.
    24. 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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    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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