WHITHER ARMINGTON TRADE MODELS?

Julian Alston, Colin Carter, Richard Green and Daniel Pick

No 270703, 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The Armington trade model distinguishes commodities by country of origin _and impo~t demand is determined in a separable two-step procedure. This framework has been applied to numerous international agricultural markets with the objective of ~odeling imp-ort demand. In addition, computable general ·- . - equilibrium (CGE) models commonly employ the Armington formulation in the trade linkage equatiops. The purpose of this paper is to test the 4rmington assumptions of -· homotheticity and separability with data from the international cotton and wheat markets. Both' parametric and nonparametric tests were performed and the e~pirical resμlts reject the Armingto~ assumptions. This has important implications for international trade.modeling an~ CGE modeling.'

Keywords: Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
Pages: 36
Date: 1989-07-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://ageconsearch.umn.edu/record/270703/files/aaea-1989-110.pdf (application/pdf)
https://ageconsearch.umn.edu/record/270703/files/a ... 0.pdf?subformat=pdfa (application/pdf)

Related works:
Journal Article: Whither Armington Trade Models? (1990)
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:aaea89:270703

DOI: 10.22004/ag.econ.270703

Access Statistics for this paper

More papers in 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)
Bibliographic data for series maintained by AgEcon Search ().