The impact of EU trade preferences on the extensive and intensive margins of agricultural and food products

Margherita Scoppola, Valentina Raimondi () and Alessandro Olper

No 51-2017, Working Papers from Macerata University, Department of Studies on Economic Development (DiSSE)

Abstract: In this paper we study the trade creation effects of EU preferential trade agreements (PTAs) in the agriculture and food sectors for a large sample of developing countries in the period 1990-2006. We investigate the extent to which the PTAs affect trade through the extensive\textemdash number of exported products - or the intensive margin - volume of existing products. We use a gravity framework in a panel data setting, and different estimators to deal with the issues of zero trade flows and with the presence of an upper bound in the dependent variable. The results show that EU PTAs positively affect the extensive margin in agricultural trade, but not in processed foods. As regards the intensive margin, the effect is driven by the role of tariffs alone, while the other provisions of PTAs do not exert any other significant impact on agricultural or food products.

Keywords: Gravity equation; EU trade preferences; Developing countries; Extensive/intensive margins (search for similar items in EconPapers)
JEL-codes: F13 F14 Q17 (search for similar items in EconPapers)
Date: 2017-12, Revised 2017-12
New Economics Papers: this item is included in nep-agr and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The impact of EU trade preferences on the extensive and intensive margins of agricultural and food products (2018)
Working Paper: The impact of EU trade preferences on the extensive and intensive margins of agricultural and food products (2014)
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