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The entry price threshold in EU agriculture: Deterrent or barrier?

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  • Santeramo, Fabio Gaetano
  • Cioffi, Antonio

Abstract

The paper investigates the effects of the entry price scheme (EPS) for a specific sector of agriculture: fresh fruit and vegetables. The analysis is conducted on the EU prices of tomatoes, lemons and apples for some of the main competing countries on the EU domestic markets: Morocco, Argentina, Turkey and China. The econometric analysis is based on testing and estimating a switching vector autoregressive model with endogenous threshold entry price level. The model shows the isolation effects and the accumulation of Standard Import Values (SIVs) above the trigger entry price. This paper contributes to clarify the role played by the EPS in avoiding or deterring low priced imports from main EU partner countries.

Suggested Citation

  • Santeramo, Fabio Gaetano & Cioffi, Antonio, 2012. "The entry price threshold in EU agriculture: Deterrent or barrier?," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 691-704.
    • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:5:p:691-704
    DOI: 10.1016/j.jpolmod.2012.02.001
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    More about this item

    Keywords

    Trade policy; Non-tariff barrier; Entry price system; EU agriculture; Fruits and vegetables; TVAR;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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