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Heterogeneous firms and homogenising standards in agri-food trade: the Polish meat case

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  • Marie-Luise Rau
  • Frank van Tongeren

Abstract

A partial equilibrium trade model with heterogeneous firms is developed and applied to the issue of compliance with the EU food standards in Polish meat production. The model parameters are estimated using a nonlinear least squares method to match the observed patterns of trade. With asymmetrically distributed productivities homogenising standards tend to increase the concentration of production and exports among the more productive and larger firms. Simulation analysis shows the trade and market structure impacts of support programmes in the context of EU accession. The simulations also highlight the importance of the substitution elasticity between varieties and effects of productivity upgrades. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

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  • Marie-Luise Rau & Frank van Tongeren, 2009. "Heterogeneous firms and homogenising standards in agri-food trade: the Polish meat case," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(4), pages 479-505, December.
    • Handle: RePEc:oup:erevae:v:36:y:2009:i:4:p:479-505
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    1. Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2011. "Structural estimation and solution of international trade models with heterogeneous firms," Journal of International Economics, Elsevier, vol. 83(2), pages 95-108, March.
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    1. Hosoe, Nobuhiro & Akune, Yuko, 2020. "Can the Japanese agri-food producers survive under freer trade? A general equilibrium analysis with farm heterogeneity and product differentiation," Japan and the World Economy, Elsevier, vol. 55(C).
    2. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    3. Hess, Sebastian, 2011. "Outsourcing Decisions Of Pig Producers In Baden-Württemberg," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114509, German Association of Agricultural Economists (GEWISOLA).
    4. Nobuhiro Hosoe & Yuko Akune, 2019. "Can the Japanese Agri-food Sectors Survive by Promoting their Exports?:A General Equilibrium Analysis with Farm Heterogeneity and Product Differentiation," GRIPS Discussion Papers 19-06, National Graduate Institute for Policy Studies.
    5. Marette Stéphan, 2016. "Non-Tariff Measures When Alternative Regulatory Tools Can Be Chosen," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 1-17, May.
    6. Vanessa von Schlippenbach & Isabel Teichmann, 2012. "The Strategic Use of Private Quality Standards in Food Supply Chains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1189-1201.
    7. Magdalena Kapelko, 2017. "Dynamic versus static inefficiency assessment of the Polish meat‐processing industry in the aftermath of the European Union integration and financial crisis," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 505-521, September.
    8. Schuster, Monica & Maertens, Miet, 2013. "Food Standards, Heterogeneous Firms and Developing Countries’ Export Performance," Working Papers 152084, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    9. M. Svatoš & L. Smutka & O. Miffek, 2010. "Competitiveness of agrarian trade of EU-15 countries in comparison with new EU member states," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(12), pages 569-582.
    10. Stephen Devadoss & Jeff Luckstead, 2018. "Implications of the Comprehensive Economic and Trade Agreement for Processed Food Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 415-440, September.
    11. Hess, S., 2015. "The Role of Trade-in-Tasks for the Competitiveness of the European Pig Industry," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    12. Dentoni, Domenico & Menozzi, Davide & Capelli, Maria Giacinta, 2012. "Group heterogeneity and cooperation on the geographical indication regulation: The case of the “Prosciutto di Parma” Consortium," Food Policy, Elsevier, vol. 37(3), pages 207-216.
    13. Hess, Sebastian, 2011. "Outsourcing, Regional Trade and Specialization: An Application to in the German Pig Sector," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114537, European Association of Agricultural Economists.
    14. Beyhan Bektasoglu & Tanja Engelbert & Martina Brockmeier, 2017. "The Effect of Aggregation Bias: An NTB-modelling Analysis of Turkey's Agro-food Trade with the EU," The World Economy, Wiley Blackwell, vol. 40(10), pages 2255-2276, October.

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