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Food Competition in World Markets: Some Evidence from a Panel Data Analysis of Top Exporting Countries

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  • Donatella Baiardi
  • Carluccio Bianchi
  • Eleonora Lorenzini

Abstract

This paper investigates the relationships between export price and income elasticities, average unit values (AUVs) and market shares for the top world food exporters in the time period 1992-2011 using a panel data framework. Emerging countries and Spain show a high price elasticity unlike other advanced countries. Moreover, an inverse relationship between price elasticities and AUVs is found to exist. The overall analysis enables the conclusion that advanced countries can maintain a specialization in low-tech sectors only if high prices, as indicators of high quality, are accompanied by a rigid foreign demand and a satisfactory income elasticity of exports.

Suggested Citation

  • Donatella Baiardi & Carluccio Bianchi & Eleonora Lorenzini, 2013. "Food Competition in World Markets: Some Evidence from a Panel Data Analysis of Top Exporting Countries," Working Papers 262, University of Milano-Bicocca, Department of Economics, revised Dec 2013.
  • Handle: RePEc:mib:wpaper:262
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    References listed on IDEAS

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    Cited by:

    1. Ignacio Cazcarro & Rosa Duarte & Miguel Martín-Retortillo & Vicente Pinilla & Ana Serrano, 2015. "How Sustainable is the Increase in the Water Footprint of the Spanish Agricultural Sector? A Provincial Analysis between 1955 and 2005–2010," Sustainability, MDPI, Open Access Journal, vol. 7(5), pages 1-26, April.

    More about this item

    Keywords

    Food Exports; Price elasticity; Income elasticity; Panel Granger causality;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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