The internationalisation of the Spanish food industry, 1970-2012: the home market effect and European market integration

Raúl Serrano (), Nieves García-Casarejos, Salvador Gil-Pareja, Rafael Llorca-Vivero and Vicente Pinilla
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Raúl Serrano: Universidad de Zaragoza, Zaragoza, Spain
Nieves García-Casarejos: Universidad de Zaragoza, Zaragoza, Spain
Rafael Llorca-Vivero: Universidad de Valencia, Valencia, Spain

No 1505, Documentos de Trabajo (DT-AEHE) from Asociación Española de Historia Económica

Abstract: The objective of this study is to analyse the factors determining the process of internationalisation of the Spanish agrifood industry from a long-term perspective. The paper concentrates on the empirical verification of the existence of a home market effect and on the effects on trade flows of integration into the European Union. With this aim in mind, we estimate a gravity equation for a sample of export flows from 13 agrifood subsectors between 1970 and 2012, with a destination of 175 markets. The existence of the “home market effect” stands out as the determining factor of the increasing process of internationalisation in the majority of the subsectors of the food industry. The presence of this effect is remarkable in the most dynamic industries, where the process of restructuring caused by the development of the internal market was more intense. Furthermore, the influence of the process of European integration has been shown to be a very important factor. Our results qualify in part the results of previous studies, since the positive effect appeared later than expected. The positive effects did not appear until the completion of the process of transition in the dismantling of the barriers established in the accession treaty.

Keywords: Palabras clave: Agrifood trade; agrifood industry; gravity model; home market effect; firm heterogeneity; regional trade agreements (search for similar items in EconPapers)
JEL-codes: F15 M21 N74 Q13 (search for similar items in EconPapers)
Pages: 22
Date: 2015-02
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Persistent link: https://EconPapers.repec.org/RePEc:ahe:dtaehe:14

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