{"title":"Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries","authors":"Jihyun Eum, I. Sheldon, S. Thompson","doi":"10.1515/jafio-2017-0035","DOIUrl":null,"url":null,"abstract":"Abstract In this article, the reasons why developing countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the results show that systematically, asymmetric bilateral trade costs and variation in the level of agricultural productivity across all countries in the sample, are the main barriers to developing countries’ agricultural exports. In addition, low-income countries face higher trade costs to export than do high-income countries.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2018-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2017-0035","citationCount":"5","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Agricultural and Food Industrial Organization","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1515/jafio-2017-0035","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
引用次数: 5
Abstract
Abstract In this article, the reasons why developing countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the results show that systematically, asymmetric bilateral trade costs and variation in the level of agricultural productivity across all countries in the sample, are the main barriers to developing countries’ agricultural exports. In addition, low-income countries face higher trade costs to export than do high-income countries.
期刊介绍:
The Journal of Agricultural & Food Industrial Organization (JAFIO) is a unique forum for empirical and theoretical research in industrial organization with a special focus on agricultural and food industries worldwide. As concentration, industrialization, and globalization continue to reshape horizontal and vertical relationships within the food supply chain, agricultural economists are revising both their views of traditional markets as well as their tools of analysis. At the core of this revision are strategic interactions between principals and agents, strategic interdependence between rival firms, and strategic trade policy between competing nations, all in a setting plagued by incomplete and/or imperfect information structures. Add to that biotechnology, electronic commerce, as well as the shift in focus from raw agricultural commodities to branded products, and the conclusion is that a "new" agricultural economics is needed for an increasingly complex "new" agriculture.