Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries
-
Jihyun Eum
and
Stanley Thompson
Abstract
In this article, the reasons why developing countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the results show that systematically, asymmetric bilateral trade costs and variation in the level of agricultural productivity across all countries in the sample, are the main barriers to developing countries’ agricultural exports. In addition, low-income countries face higher trade costs to export than do high-income countries.
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Articles in the same Issue
- Introduction to the Special Issue in Honor of Professor Emilio Pagoulatos
- Reprinted Articles
- What Determines the Elasticity of Industry Demand?
- Estimates and Determinants of Armington Elasticities for the U.S. Food Industry
- Articles
- A Re-Examination of Multistage Economies in Hog Farming
- Are Online and Offline Advertising Substitutes or Complements? Evidence from U.S. Food Industries
- Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries
