Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/75040 
Year of Publication: 
2007
Series/Report no.: 
LICOS Discussion Paper No. 187
Publisher: 
Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance, Leuven
Abstract: 
Using a bilateral trade equation derived from a monopolistic competition model, we investigated market access reciprocity in food trade among the US, Canada, the EU and Japan. We explore country and industry-specific market access asymmetry through the border effect approach, re-challenging the underlying main explanations. Our findings reveal marked asymmetry in reciprocal trade openness; indeed, access to the food markets of the US and Japan appears significantly easier than reciprocal access to both Canada and, especially, the EU. Policy trade barriers, firstly in the firms of NTBs, the degree of product differentiation and `home bias?in preferences, are all important factors in explaining border effects. Moreover, several stylized facts suggest that border effect interpretation should also be based on political economy arguments.
Subjects: 
gravity
market access
asymmetry
food trade
NTBs
JEL: 
F13
F14
Q17
Document Type: 
Working Paper

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