IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/275934.html
   My bibliography  Save this paper

European Market for Mercosur Agricultural Exports: An econometric study of commodity trade flows

Author

Listed:
  • Niemi, J.

Abstract

The European Union (EU), which represents one of the world’s largest markets for raw materials and agricultural products, with imports of more than €113 billion in 2015, is a particularly attractive and very sought-after market for Mercosur exporters. This paper provides new evidence on income and price elasticities of demand for agricultural exports from Mercosur countries to the EU. The econometric analysis of the study is conducted with a sample of annual data which covers Mercosur’s major commodity exports to the EU from 1988 to 2015.The results indicate that for the eight commodities analysed there is a relatively weak demand response to income and price changes in the EU. The policy implication is that trade policy measures in the form of tariff and non-tariff barriers are not very significant in changing the quantity of imports demanded. However, the results suggest that relative-price variations affect significantly the demand for Mercosur agricultural exports, implying that the exporter’s market share is influenced by price competitiveness.

Suggested Citation

  • Niemi, J., 2018. "European Market for Mercosur Agricultural Exports: An econometric study of commodity trade flows," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275934, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:275934
    DOI: 10.22004/ag.econ.275934
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/275934/files/2423.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.275934?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    2. Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107.
    3. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & Mihaly Himics & Robert M'barek, 2016. "Cumulative economic impact of future trade agreements on EU agriculture," JRC Research Reports JRC103602, Joint Research Centre.
    4. Perron, Pierre, 1988. "Trends and random walks in macroeconomic time series : Further evidence from a new approach," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 297-332.
    5. Alison Burrell & Emanuele Ferrari & Aida González Mellado & Mihaly Himics & Jerzy Michalek & Shailesh Shrestha & Benjamin Van Doorslaer, 2011. "Potential EU-Mercosur Free Trade Agreement: Impact Assessment, Volume 1: Main results," JRC Research Reports JRC67394, Joint Research Centre.
    6. Davidson, James E H, et al, 1978. "Econometric Modelling of the Aggregate Time-Series Relationship between Consumers' Expenditure and Income in the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(352), pages 661-692, December.
    7. Phillips, Peter C B & Ouliaris, S, 1990. "Asymptotic Properties of Residual Based Tests for Cointegration," Econometrica, Econometric Society, vol. 58(1), pages 165-193, January.
    8. Scobie, Grant M. & Johnson, Paul R., 1975. "Estimation of the elasticity of substitution in the presence of errors of measurement," Journal of Econometrics, Elsevier, vol. 3(1), pages 51-56, February.
    9. Honma, Masayoshi, 1991. "Growth in Japan's horticultural trade with developing countries: an economic analysis of the market," Research reports 89, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dobrolyubova, Elena (Добролюбова, Елена), 2018. "Evaluation of the Effectiveness of Delegated Powers [Оценка Результативности И Эффективности Переданных Полномочий]," Working Papers 041839, Russian Presidential Academy of National Economy and Public Administration.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Niemi, Jyrki S. & Huan-Niemi, Ellen & Ledebur, Oliver von & Salamon, Petra, 2005. "Expansion of Mercosur's Agricultural Exports to the EU: An Empirical Assessment of the Trade Flows," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24606, European Association of Agricultural Economists.
    2. Campos, Julia & Ericsson, Neil R. & Hendry, David F., 1996. "Cointegration tests in the presence of structural breaks," Journal of Econometrics, Elsevier, vol. 70(1), pages 187-220, January.
    3. Huan-Niemi, Ellen & Niemi, Jyrki S., 2009. "China’s growing food imports from the EU," 2009 Conference, August 16-22, 2009, Beijing, China 51541, International Association of Agricultural Economists.
    4. Francisco Estrada & Pierre Perron, "undated". "Detection and attribution of climate change through econometric methods," Boston University - Department of Economics - Working Papers Series 2013-015, Boston University - Department of Economics.
    5. Noel, Michael D., 2015. "Do Edgeworth price cycles lead to higher or lower prices?," International Journal of Industrial Organization, Elsevier, vol. 42(C), pages 81-93.
    6. Pat Wilson & John Okunev & Guy Ta, 1994. "Are Real Estate and Securities Markets Integrated? Some Australian Evidence," Working Paper Series 42, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    7. Waleerat Suphannachart & Peter Warr, 2011. "Research and productivity in Thai agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 35-52, January.
    8. Hee Soo Lee & Tae Yoon Kim, 2018. "Hedge Fund Styles and their Contagion from the Equity Market," International Review of Finance, International Review of Finance Ltd., vol. 18(1), pages 91-112, March.
    9. Goldberg, Michael D. & Frydman, Roman, 1996. "Empirical exchange rate models and shifts in the co-integrating vector," Structural Change and Economic Dynamics, Elsevier, vol. 7(1), pages 55-78, March.
    10. Noel D. Uri, 1998. "The Impact of Energy on the Adoption of Conservation Tillage in the United States," Energy & Environment, , vol. 9(5), pages 549-568, August.
    11. Pan, Lijun & Wang, Yangjie & Sun, Xiaofei & Sadiq, Muhammad & Dagestani, Abd Alwahed, 2023. "Natural resources: A determining factor of geopolitical risk in Russia? Revisiting conflict-based perspective," Resources Policy, Elsevier, vol. 85(PA).
    12. Swarna Dutt & Dipak Ghosh, 1997. "Are experts' expectations rational? A multicurrency analysis," Applied Economics, Taylor & Francis Journals, vol. 29(6), pages 803-812.
    13. Janine Aron & John Muellbauer, 2000. "Personal and Corporate Saving in South Africa," The World Bank Economic Review, World Bank, vol. 14(3), pages 509-544, September.
    14. Lahlou, Kamal & Doghmi, Hicham & Schneider, Friedrich, 2020. "The Size and Development of the Shadow Economy in Morocco," Document de travail 2020-3, Bank Al-Maghrib, Département de la Recherche.
    15. Bertelli, Stefano & Vacca, Gianmarco & Zoia, Maria, 2022. "Bootstrap cointegration tests in ARDL models," Economic Modelling, Elsevier, vol. 116(C).
    16. Singh, Tarlok, 2008. "Testing the Saving-Investment correlations in India: An evidence from single-equation and system estimators," Economic Modelling, Elsevier, vol. 25(5), pages 1064-1079, September.
    17. Noel D. Uri, 1996. "The Impact of Crude Oil Price Volatility on Agricultural Employment in the United States," Energy & Environment, , vol. 7(1), pages 57-74, February.
    18. Committee, Nobel Prize, 2003. "Time-series Econometrics: Cointegration and Autoregressive Conditional Heteroskedasticity," Nobel Prize in Economics documents 2003-1, Nobel Prize Committee.
    19. Charles G. Renfro, 2009. "The Practice of Econometric Theory," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75571-5.
    20. Franses,Philip Hans & Dijk,Dick van & Opschoor,Anne, 2014. "Time Series Models for Business and Economic Forecasting," Cambridge Books, Cambridge University Press, number 9780521520911, September.

    More about this item

    Keywords

    Agricultural and Food Policy; Demand and Price Analysis; International Relations/Trade;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:275934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.