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Quality Upgrading, Trade, and Market Structure in Food Processing Industries

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  • Tseng, Eric
  • Sheldon, Ian

Abstract

In this paper the heterogeneous firms and trade literature is extended by integrating quality of inputs and outputs in a food and agricultural setting, along with an analysis of how the ability to translate capability into higher product quality is critical in evaluating the cut-offs for food processing firms to enter domestic and export markets. Specifically, it is found that the direction of change in the domestic market cut-off, due to an increased ability to raise quality, is sensitive to key parameters of the capability distribution; while for the export market cut-off the direction of change depends on the fixed costs of entry into and rents from exporting. These hypotheses are then tested for using panel data for Chilean food processors.

Suggested Citation

  • Tseng, Eric & Sheldon, Ian, 2015. "Quality Upgrading, Trade, and Market Structure in Food Processing Industries," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229237, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iats15:229237
    DOI: 10.22004/ag.econ.229237
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    References listed on IDEAS

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    Cited by:

    1. Chaoping Xie & Jianfeng Gao & Jason H. Grant & Sven Anders, 2018. "Examining the Canada–China agri‐food trade relationship: Firms, trading partners, and trading volumes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 539-555, December.

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    Keywords

    Agricultural and Food Policy; International Relations/Trade;

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