This paper uses the border effect estimate from a gravity model to assess the level of trade integration in agricultural markets between 22 OECD countries, over the 1995-2002 period. The empirical analysis shows that using a gravity equation derived from theory, in the estimation of the border effect, matters. A representative estimate of the border effect shows that crossing a national border into the OECD countries induces a trade-reduction effect by a factor of 8. This average value masks substantial differences in market access across the country groups considered, with higher value in trade between EU countries and lower in trade between CEEC countries. However, the trade integration between CEECs and others OECDs increases substantially in the observed period. Finally, the equivalent tariffs implied by the estimated border effects are not implausible when compared to the actual range of direct protection measures.

Access to OECD agricultural market: A gravity border effect approach / A. Olper, V.M.P. Raimondi - In: The Future of Rural Europe in the Global Agri-Food System / S. Rasmussen. - Copenhagen : KVL Food and Resource Economic Institute, 2005 Aug. - pp. 1-18 (( Intervento presentato al 11th. convegno The Future of Rural Europe in the Global Agri-Food System tenutosi a Copehagen, Denmark nel 2005.

Access to OECD agricultural market: A gravity border effect approach

A. Olper;V.M.P. Raimondi
2005-08

Abstract

This paper uses the border effect estimate from a gravity model to assess the level of trade integration in agricultural markets between 22 OECD countries, over the 1995-2002 period. The empirical analysis shows that using a gravity equation derived from theory, in the estimation of the border effect, matters. A representative estimate of the border effect shows that crossing a national border into the OECD countries induces a trade-reduction effect by a factor of 8. This average value masks substantial differences in market access across the country groups considered, with higher value in trade between EU countries and lower in trade between CEEC countries. However, the trade integration between CEECs and others OECDs increases substantially in the observed period. Finally, the equivalent tariffs implied by the estimated border effects are not implausible when compared to the actual range of direct protection measures.
agricultural trade, border effect, gravity equation, OECDs
Settore AGR/01 - Economia ed Estimo Rurale
EAAE
Book Part (author)
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/2434/12548
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