Agric. Econ. - Czech, 2011, 57(8):370-383 | DOI: 10.17221/116/2010-AGRICECON

Modelling the factor content of agricultural trade

Ján POKRIVČÁK1, Pavel CIAIAN2, d'Artis KANCS2
1 Department of Economics, Slovak Agricultural University in Nitra, Nitra, Slovak Republic
2 IPTS-JRC European Commission, Seville, Spain

This article examines the factor content of agricultural trade in the Central and East European (CEE) transition countries. It relates the factor content of agricultural trade to the cross-country differences in technology stemming from different farm organisations between the CEE countries agricultural sectors and to the differences in relative factor endowments. The relative factor endowments alone do not satisfactorily explain agricultural trade flows in the CEE countries. We find that transaction costs and market imperfections that affect the organisation of production also distort farm specialisation and hence V the actor content of agricultural trade.

Keywords: factor content, agricultural trade, comparative advantages, transaction cost

Published: August 31, 2011  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
POKRIVČÁK J, CIAIAN P, KANCS D. Modelling the factor content of agricultural trade. Agric. Econ. - Czech. 2011;57(8):370-383. doi: 10.17221/116/2010-AGRICECON.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Abo-Zaid M.S. (2010): Sticky Wages, Incomplete PassThrough and Inflation Targeting: What is the Right Index to Target? Journal of Economics and Econometrics, 53: 28-58.
    2. Allen A., Lueck D. (1998): The nature of the farm. Journal of Law and Economics, 41: 343-386. Go to original source...
    3. Bojnec S., Ferto I. (2008): European enlargement and agrofood trade. Canadian Journal of Agricultural Economics, 56: 563-579. Go to original source...
    4. Bojnec S., Ferto I. (2006): Comparative Advantages and Competitiveness of Hungarian and Slovenian Agri-Food Trade in the EU Markets. In: 98th EAAE Seminar Marketing Dynamics within the Global Trading System: New Perspectives. Chania, Crete, Greece, 29 June-2 July.
    5. Bowen H.P., Leamer E.E., Sveikauskas L. (1987): Multicountry, multifactor test of the factor abundance theory. American Economic Review, 77: 791-809. Go to original source...
    6. Campbell L.D. (2010): History, Culture, and Trade: A Dynamic Gravity Approach. EERI Research Paper Series No 10/26, Economics and Econometrics Research Institute, Brussels.
    7. Ciaian P., Swinnen J.F.M. (2006): Land market imperfections and agricultural policy impacts in the new EU Member States. American Journal of Agricultural Economics, 88: 799-815. Go to original source...
    8. Ciaian P., Pokrivcak J., Drabik D. (2009): Transaction costs, agricultural production specialisation and farm structure in Central and Eastern Europe. Post-Communist Economies, 21: 193-203. Go to original source...
    9. COMEXT (2004): External Trade Statistics Database. European Commission and Eurostat.
    10. Csaki C., Lerman Z. (1996): Agricultural Transformation in Central and Eastern Europe and the Former USSR: Issues of Land Reform and Farm Restructuring. Paper In: VIIIth Congress of the European Association of Agricultural Economists, Edinburgh.
    11. Davis D.R., Weinstein D.E. (2001): An account of global factor trade. American Economic Review, 91: 1423-1453. Go to original source...
    12. Eurostat (2007): Intra- and extra-EU trade - Annual data, CN - Supplement 2/2007, (DVD-ROM), Luxembourg.
    13. Eurostat (2008): Europe in Figures - Eurostat Statistical Yearbook 2008. Luxembourg.
    14. FADN (2008): The Farm Accountancy Data Network. European Commission. Available at http://ec.europa.eu/agriculture/rica
    15. Feenstra R.C. (2004): Advanced International Trade. Princeton, Princeton University Press; ISBN 0-691-11410-2.
    16. Ferto I. (2005): Vertically differentiated trade and differences in factor endowment: The case of agri-food products between Hungary and the EU. Journal of Agricultural Economics, 56: 117-134. Go to original source...
    17. GTAP (2008): GTAP 7 Data Base, December 2008.
    18. Kancs D. (2007): Trade growth in a heterogeneous firm model: Evidence from South Eastern Europe. World Economy, 30: 1139-1169. Go to original source...
    19. Kancs D., Ciaian P. (2010a): Factor content of bilateral trade: the role of firm heterogeneity and transaction costs. Agricultural Economics, 41: 305-317. Go to original source...
    20. Kancs D., Ciaian P. (2010b): Factor content of agricultural trade in a generalised three factor model. Journal of International Agricultural Trade and Development, 6: 97-126.
    21. Kancs D., Weber G. (2001): Modelling Agricultural Policies in the CEE Accession Countries. EERI Research Paper Series No 01/02, Economics and Econometrics Research Institute, Brussels.
    22. Kielyte J. (2008): Estimating panel data models in the presence of endogeneity and selection. Journal of Economics and Econometrics, 51: 1-19.
    23. Koo W.W., Anderson C. (1988): Effects on Resource Endowments on Agricultural Trade. Agricultural Economics Report No. 239. Department of Agricultural Economics, North Dakota University.
    24. Leamer E. (1980): The Leontief paradox reconsidered. Journal of Political Economy, 88: 495-503. Go to original source...
    25. Leamer E. (1984): Sources of International Comparative Advantage: Theory and Evidence, MIT Press, Cambridge.
    26. Lee C., Wills D., Schluter G. (1988): Examining the Leontief paradox in U.S. agricultural trade. Agricultural Economics, 2: 259-272. Go to original source...
    27. Leontief W.W. (1953): Domestic Production and Foreign Trade; the American Capital Position Re-Examined. Proceeding of the American Philosophical Society, 97: 332-349.
    28. Mitze T. 2010. Estimating Gravity Models of International Trade with Correlated Time-Fixed Regressors: To IV or not IV? EERI Research Paper Series No 10/22, Economics and Econometrics Research Institute, Brussels.
    29. Pollak R.A. (1985): A transaction costs approach to families and households. Journal of Economic Literature, 23: 581-608.
    30. Prosterman R.L., Rolfes L. (1999): Review of the Legal Basis for Agricultural Land Markets in Lithuania, Poland and Romania. In: Csaki C., Lerman Z. (eds.): Structural Change in the Farming Sectors in Central and Eastern Europe: Lessons for the EU Accession. Washington DC, World Bank; ISBN 978-0-8213-4733-1, pp. 110-139.
    31. Qineti A., Rajcaniova M., Matejkova E. (2009): The competitiveness and comparative advantage of the Slovak and the EU agri-food trade with Russia and Ukraine. Agricultural Economics - Czech, 55: 375-383. Go to original source...
    32. Rashid A., Razzaq T. (2010): Estimating Import-Demand Function in ARDL Framework. EERI Research Paper Series No 10/15, Economics and Econometrics Research Institute, Brussels.
    33. Schluter G., Lee G.K. (1978): Is Leontief 's Paradox applicable to U.S. agricultural trade? Western Journal of Agricultural Economics, 3: 165-171.
    34. Schmitt G. (1991): Why is the agriculture of advanced Western countries still organised by family farms? Will this continue to be so in the future? European Review of Agricultural Economics, 18: 443-458. Go to original source...
    35. Schott P. (2003): One size fits all? Heckscher-Ohlin specialisation in global production. American Economic Review, 93: 686-708. Go to original source...
    36. Stern R. (1975): Testing trade theories. In: Kenen P. (ed.): International Trade and Finance: Frontiers for Research. Cambridge University Press, New York; ISBN 9780521068741. Go to original source...
    37. Svatoš M., Smutka L. (2010): Development of agricultural foreign trade in the countries of Central Europe. Agricultural Economics - Czech, 56: 163-175. Go to original source...
    38. Trefler D. (1993): International factor price differences: Leontief was right. Journal of Political Economy, 101: 138-160. Go to original source...
    39. Trefler D. (1995): The case of the missing trade and other mysteries. American Economic Review, 85: 1029- 1046.
    40. Vanek J. (1959): An afterthought on the real-cost-opportunity cost dispute and some aspects of general equilibrium under conditions of variable factor supplies. Review of Economic Studies, 26: 198-208. Go to original source...
    41. Vanek J. (1968): The factor proportions theory: the N-factor case. Kyklos, 4: 749-756. Go to original source...
    42. World Bank (2005): From Disintegration into Reintegration: Eastern Europe and the Former Soviet Union in International Trade. The World Bank, Washington D.C.; ISBN 978-0821361979.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content