Factor Content of Agricultural Trade: The Role of Firm Heterogeneity and Transaction Costs

d'Artis Kancs and Pavel Ciaian

No 51429, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: In this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate cross-country differences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade, we find that the first two hypotheses are confirmed by the majority of the developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organisation, both hypotheses are confirmed by the majority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organisation in the CEE.

Keywords: Institutional and Behavioral Economics; International Relations/Trade; Production Economics (search for similar items in EconPapers)
Pages: 32
Date: 2009
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Factor content of bilateral trade: the role of firm heterogeneity and transaction costs (2010)
Working Paper: Factor Content of Agricultural Trade (2008)
Working Paper: Factor Content of Agricultural Trade (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:51429

DOI: 10.22004/ag.econ.51429

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