TOTAL FACTOR PRODUCTIVITY AND PROCESSED FOOD TRADE: A CROSS-COUNTRY ANALYSIS

Processed food products account for a growing share of global agricultural trade. Growth in total factor productivity and intersectoral linkages between agricultural and processed foodsectors are hypothesized as factors explaining this phenomenon. Estimating the neoclassical trade model using an internationally comparable database, we find evidence of (a) Hechsher-Ohlin (factor endowments) and Ricardian-type (technology) effects in agricultural and processed food trade, and (b) transfer of comparative advantage from the primary agricultural sector to the processed food sector. Thus, public policies protecting primary agriculture can adversely affect processed food sectors, while those supporting R&D efforts can bring about dynamic and comparative advantage.


Issue Date:
2002-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31130
Published in:
Journal of Agricultural and Resource Economics, Volume 27, Number 2
Page range:
539-553
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-24

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