Title: Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade
Authors: KANCS D'ARTISCIAIAN PavelPOKRIVCAK Jan
Citation: GTAP Conference Papers p. 1-33
Publisher: GTAP, Purdue University
Publication Year: 2009
JRC Publication N°: JRC55566
URI: https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=3002
http://publications.jrc.ec.europa.eu/repository/handle/JRC55566
Type: Contributions to Conferences
Abstract: The present study examines factor content of the CEE transition country agricultural trade. We examine the relative country abundance for labour, capital and land, and test the Heckscher-Ohlin-Vanek (HOV) hypothesis. Our empirical findings suggest that the factor content of agricultural exports and imports is rather similar in CEE and most of the agricultural trade flows do not satisfy the HOV prediction. In order to explain the general lack of agricultural specialisation and the observed paradox in the CEE's agricultural trade, we examine the role of transaction costs and market imperfections. We find that transaction costs and market imperfections distort farm specialisation and hence factor content of agricultural trade.
JRC Institute:Institute for Prospective Technological Studies

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