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Abstract

As with most agricultural products in world trade, trade in meat products is restricted by a variety of non-tariff barriers in different countries. In the case of New Zealand meat products there are quota restrictions in the USA, Canada, and EU markets and hygiene regulations of varying standards in most markets. The building of demand models for such products is fraught with difficulties associated with such restrictions as well as problems of specification and error distribution. Gravity models of traded goods offer a possible methodology for handling these difficulties. This paper sets out a combined cross-section and time series model of the New Zealand meat trade for the period 1994-2003 including the impact of quotas and the adoption of mandatory meat hygiene regulations to trade.

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