The Role of Trade-in-Tasks For the Competitiveness of the European Pig Industry

Sebastian Hess

No 187438, 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 from German Association of Agricultural Economists (GEWISOLA)

Abstract: The global trend of agro-industrialisation is increasingly transforming farms and firms into specialist component suppliers within a multi-stage food processing chain. The trade-in-tasks theory predicts in this context that declining costs for cross-country outsourcing of certain stages of the production process (tasks) generates intra-industry trade and may increase the competitiveness of the final product. Based on this theory, a conceptual framework was established and empirically applied to the EU27 pig industry. The results suggest that the average EU country could increase the competitiveness of its processed meat exports; one potential source of these gains can be structural change among pig farms in other EU countries, which is utilized through vertical intra-industry trade in live pigs. In contrast, changes in outsourcing costs since 2002 due to changes in EU membership or due to the adoption of the Euro appeared non-significant in panel regressions.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Pages: 13
Date: 2014
New Economics Papers: this item is included in nep-agr, nep-cse and nep-int
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Journal Article: The Role of Trade-in-Tasks for the Competitiveness of the European Pig Industry (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi14:187438

DOI: 10.22004/ag.econ.187438

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