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Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries

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  • Eum, Jihyun
  • Sheldon, Ian
  • Thompson, Stanley

Abstract

In this article, the reasons why developing countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the results show that systematically, asymmetric bilateral trade costs and variation in the level of agricultural productivity across all countries in the sample, are the main barriers to developing countries’ agricultural exports. In addition, low-income countries face higher trade costs to export than do high-income countries.
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  • Eum, Jihyun & Sheldon, Ian & Thompson, Stanley, 2017. "Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries," 2017: Globalization Adrift, December 3-5, 2017, Washington, D.C. 266814, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iats16:266814
    DOI: 10.22004/ag.econ.266814
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    1. Restuccia, Diego & Yang, Dennis Tao & Zhu, Xiaodong, 2008. "Agriculture and aggregate productivity: A quantitative cross-country analysis," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 234-250, March.
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    Cited by:

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    2. Ignacio del Rosal, 2024. "Maritime connectivity and agricultural trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 153-168, February.

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