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Intra-industry Trade in Agricultural Products on intra-EC level: The Impact of the Common Agricultural Policy (CAP) Funds

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  • Katrakilidis, Konstantinos
  • Mardas, Dimitri

Abstract

This paper aims at specifying the main determinants of the intra-industry trade in agricultural products, associated with the funds of the Common Agricultural Policy (CAP) of the EC, and more precisely, with its “price support mechanism” and its “structural reform policy.” It presents CAP’s reformed main tools and mechanisms, and explains the choice of selected variables as determinants of intra-industry trade in agricultural products at intra-EC trade. The econometric analysis covers the period 1973-2005, following recent developments in time-series analysis employing the ARDL approach to cointegration. The empirical results provide evidence of Granger causal effects in both on short-run and long-run horizon running from CAP’s above mentioned policy tools to intra-industry trade.

Suggested Citation

  • Katrakilidis, Konstantinos & Mardas, Dimitri, 2010. "Intra-industry Trade in Agricultural Products on intra-EC level: The Impact of the Common Agricultural Policy (CAP) Funds," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(2), pages 1-13.
    • Handle: RePEc:ags:aergaa:163325
    DOI: 10.22004/ag.econ.163325
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    More about this item

    Keywords

    Agricultural and Food Policy;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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