Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/325635 
Year of Publication: 
2022
Citation: 
[Journal:] Italian Review of Agricultural Economics (REA) [ISSN:] 2281-1559 [Volume:] 77 [Issue:] 1 [Year:] 2022 [Pages:] 51-62
Publisher: 
Firenze University Press, Florence
Abstract: 
Previous studies have investigated the behaviour of trade flows at the aggregate level, thus they suffer from aggregation bias. In this paper, we use the sectoral data on agricultural exports and imports to examine whether they cointegrate. The likelihood-based panel cointegration technique is applied to investigate the long-run convergence between the variables for 13 industrialized countries. The results indicate that a long-run steady-state relationship exists between the variables for most countries in the sample. The policy implications of our findings are that agricultural trade does not lead to the violation of international budget constraints and, more importantly, there is no productivity gap in the agriculture sector between the domestic economy and the rest of the world, implying a lack of permanent technological shocks to the domestic economy. The results also provide support for intra-industry trade in the agriculture sector.
Subjects: 
agriculture
imports
exports
cointegration
JEL: 
E60
F31
F14
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.