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Exporting, Technical Efficiency and Product Quality: An Empirical Analysis of the Agricultural Sector in the Mediterranean Countries

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  • Nadia Belhaj Hassine-Belghith

Abstract

This paper investigates the association between exporting and agricultural performance in terms of production efficiency and product quality. We test for the learning-by-exporting and self selection effects in a panel of advanced and developing Mediterranean countries involved in global market liberalisation. Product quality measures are inferred from trade data using a discrete choice demand model, and technical efficiency scores are appraised using a stochastic production frontier approach. Based on joint estimation of the performance equations and a dynamic export probit decision, the empirical results lend strong support to the self-selection hypothesis. Exporting appears to help quality upgrading that encourages more efficient use of resources.

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  • Nadia Belhaj Hassine-Belghith, 2009. "Exporting, Technical Efficiency and Product Quality: An Empirical Analysis of the Agricultural Sector in the Mediterranean Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 769-788.
    • Handle: RePEc:taf:jdevst:v:45:y:2009:i:5:p:769-788
    DOI: 10.1080/00220380902753201
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