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The Factor Content of Heterogeneous Firm Trade

d'Artis Kancs and Pavel Ciaian

No 2009.6, Working Papers from International Network for Economic Research - INFER

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 di§erences 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 ma jority 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 ma jority 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: Factor content; bilateral trade; relative factor abundance; technological diferences; agriculture; transaction costs (search for similar items in EconPapers)
JEL-codes: F12 F14 D23 Q12 Q17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-int
Date: 2009
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Journal Article: The Factor Content of Heterogeneous Firm Trade (2012) Downloads
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