Heterogeneous firms and homogenising standards in agri-food trade: the Polish meat case

Marie-Luise Rau and Frank van Tongeren

European Review of Agricultural Economics, 2009, vol. 36, issue 4, 479-505

Abstract: A partial equilibrium trade model with heterogeneous firms is developed and applied to the issue of compliance with the EU food standards in Polish meat production. The model parameters are estimated using a nonlinear least squares method to match the observed patterns of trade. With asymmetrically distributed productivities homogenising standards tend to increase the concentration of production and exports among the more productive and larger firms. Simulation analysis shows the trade and market structure impacts of support programmes in the context of EU accession. The simulations also highlight the importance of the substitution elasticity between varieties and effects of productivity upgrades. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Date: 2009
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Working Paper: Heterogeneous Firms and Homogenising Standards in Agri-Food Trade - the Polish Meat Case (2008)
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