A Re-Examination of the Benefits of Trade Agreements on Agricultural Exports and the Impact of the 2008 Great Recession

David Karemera, Mathew Guah, Gerald Smalls and Louis Whitesides

International Journal of Food and Agricultural Economics (IJFAEC), 2023, vol. 11, issue 3

Abstract: This study provides an analysis of trade benefits of regional trade agreements on global agricultural trade flows. The impact of the 2008 Great Recession is examined. Trade creation and diversion effects are evaluated within the framework of dynamic gravity models. Thegeneralized gravity equations and probit models that account for missing export values are estimated by methods that deal with various specification effects. The findings show that the system-GMM is the efficient estimator. The results reveal that the ASEAN, EAC, and EU associations were more effective in generating agricultural trade benefits for members than the rest of the associations. The NAFTA, MERCOSUR, and SADC associations generated little or no benefits for members. The advent of the 2008 Great Recession impaired agricultural trade flows. While the ASEAN, EAC, and EU associations sustained net trade creation during the entire period and sub-periods, all benefits declined uniformly following the 2008 Great Recession

Keywords: Agricultural and Food Policy; Financial Economics; International Relations/Trade; Political Economy; Research Methods/Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/339049/files/vol11.no3.pp131.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:339049

DOI: 10.22004/ag.econ.339049

Access Statistics for this article

More articles in International Journal of Food and Agricultural Economics (IJFAEC) from Alanya Alaaddin Keykubat University, Department of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().