Title: The Factor Content of Heterogeneous Firm Trade
Authors: KANCS D'ARTISCIAIAN Pavel
Citation: INFER Working Paper Series vol. 6 p. 1-32
Publisher: International Network for Economic Research
Publication Year: 2009
JRC Publication N°: JRC56147
URI: http://www.infer-research.net/files_publications/wp2009_6.pdf
http://publications.jrc.ec.europa.eu/repository/handle/JRC56147
Type: Articles in Journals
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:Institute for Prospective Technological Studies

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