Do Trade Agreements Increase Food Trade?

Mujahid, Irfan; Kalkuhl, Matthias

doi:10.1111/twec.12324

Cited by 15 publications

(8 citation statements)

References 25 publications

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“…The aforementioned findings also coincide with that of Engelbrecht and Pearce (2007); they concluded that the GATT/WTO had a positive and statistically significant impact on trade in capital-intensive commodities (in manufacturing). Further, our results contradict the findings of Mujahid and Kalkuhl (2016) that the GATT/WTO does not have any positive effect on food sectors.…”

Section: Empirical Results and Discussioncontrasting

confidence: 99%

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Natural Resources Endowment and WTO

Soukar

2019

Journal of Economic Integration

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The objective of the study is to investigate the asymmetric impact of the World Trade Organization (WTO) across developing countries. We also demonstrate the lack of homogeneity between these countries in terms of their market growth and their dependence on natural resources. Empirically, we classified our sample of countries into categories using cluster analysis, and we relied on the gravity models to estimate the effects of WTO. We found that emerging resource-rich countries most significantly benefit from their accession to the organization. However, regional integration and bilateral agreements benefit non-emerging resource-rich countries. Although resource-poor countries have received uneven benefits from WTO accession, non-emerging resource-poor countries have benefited more from accession. However, regional integration is an appropriate trade strategy for both resource-poor categories, and generalized system of preferences (GSP) benefit the non-emerging markets. Finally, accession to WTO does not increase trade in natural resources for any specific category of countries discussed in this study.

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Section: Empirical Results and Discussioncontrasting

confidence: 99%

“…Finally, Mujahid and Kalkuhl (2016) found that although, on an average, the WTO is found to have negative implications on food trade, it benefits the developing countries more than the developed countries.…”

Section: Impact Of Wto On Industrialized and Developing Countriesmentioning

confidence: 99%

Natural Resources Endowment and WTO

Soukar

2019

Journal of Economic Integration

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“…However, the widely cited article by Santos, Silva and Tenreyro (2006) claims that the multiplicative form of the gravity equation should be estimated using the Poisson Pseudo Maximum Likelihood (PPML), which provides the most optimal results. In recent literature, PPML has become one of the preferred estimation techniques and has also been applied as the main method in studies focusing on sectorial data such as in Sun and Reed (2010), Jean and Bureau (2016), and Mujahid and Kalkuhl (2016).…”

Section: Model Specificationmentioning

confidence: 99%

“…The gravity model has also been used for assessing the impact of EU trade policy by Bergstrand et al (2011) and Montalbano and Nenci (2014). At a sectorial level, several studies have focused on agricultural or food trade (Vollrath et al 2009, Jean and Bureau 2016, Mujahid and Kalkuhl 2016. However, the impact of FTAs on automotive industry trade has received relatively little attention in recent literature.…”

Section: Introductionmentioning

confidence: 99%

Trade Effects of the EU–South Korea Free Trade Agreement in the Automotive Industry

Juust

Vahter

Varblane

2020

Journal of East-West Business

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The EU-South Korea FTA, enforced in 2011, represents a significant case of a trade deal signed between two major developed economies that also belong among the largest car exporters in the world. This paper examines the effects of the EU-South Korea FTA on bilateral automotive industry trade, comparing them to the changes in total bilateral trade. The empirical analysis applies the gravity model framework with its contemporary methodological advancements and estimation techniques. The empirical results show that the trade-enhancing effects of the FTA in the auto trade are substantially higher than in total trade. Additionally, EU bilateral auto exports have increased more than South Korea's exports. The dynamics of the post-FTA trade flows suggest that the removal of the automotive industry's non-tariff barriers have played an important role in trade facilitation, especially for EU exports. The enforcement of the FTA has also been followed by notable changes in the structure of EU auto exports with the share of higher value final goods increasing and input goods decreasing.

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“…Many studies address the trade effects of participation in the World Trade Organization (WTO) and its predecessor the General Agreement on Tariffs and Trade (GATT) (Rose 2004; Grant and Boys 2011; Anderson 2016) as well as those of regional and bilateral free trade agreements (FTAs) (Miljkovic et al . 2003; Grant and Boys 2011; Mujahid and Kalkuhl 2016). There has also been an interest in understanding the impacts of FTAs on exporters’ pricing behaviour.…”

Section: Introductionmentioning

confidence: 99%

FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector

Permani

2020

Aus J Agri & Res Econ

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The growing number of bilateral and regional free trade agreements (FTAs) alongside exchange rate volatility has raised a question on whether these affect exporters’ pricing behaviors, hence competitiveness. This study contributes to this topic by examining Australian dairy export price behavior across eight major markets taking into account the extent of pass‐through of exchange rate and tariff as well as FTAs between Australia and its trading partners. Commodity‐level dairy trade data from 1996 to 2016 and the feasible generalized least squares methods are employed. The study finds incomplete pass‐through at the industry level. The dairy export prices decrease by 1.7% if Australian dollar depreciates by 10%, while 10% tariff reduction is associated with 0.7% export price cut. Results at the commodity level show different pricing behaviors across destination and commodity markets. Overall, apart from the tariff effects, there is minimal evidence of the impacts of FTAs on dairy export prices.

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Do Trade Agreements Increase Food Trade?

Cited by 15 publications

References 25 publications

Natural Resources Endowment and WTO

Natural Resources Endowment and WTO

Trade Effects of the EU–South Korea Free Trade Agreement in the Automotive Industry

FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector

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