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|Title:||The Factor Content of Heterogeneous Firm Trade|
|Authors:||KANCS D'ARTIS; CIAIAN Pavel|
|Citation:||INFER Working Paper Series vol. 6 p. 1-32|
|Publisher:||International Network for Economic Research|
|Type:||Articles in periodicals and books|
|Abstract:||In this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate crosscountry differences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade, we find that the first two hypotheses are confirmed by the majority of the developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organisation, both hypotheses are confirmed by the majority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organisation in the CEE.|
|JRC Institute:||Growth and Innovation|
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