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Regional production adjustment to import competition: evidence from the French agro-industry

Author

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  • Corinne Bagoulla
  • Emmanuelle Chevassus-Lozza
  • Karine Daniel
  • Carl Gaigné

Abstract

This paper aims at evaluating the impact of increasing imports on the reallocation of agrifood production across regions within countries. From French data for the period 1995-2002, we show that regional agri-food production adjusts differently to increasing imports according to the region where the agri-food firms are located. More precisely, even though proximity to consumers significantly shapes the spatial distribution of agri-food production, an increase in agri-food imports does not make regions with a high demand more attractive but makes low-wage regions more attractive. In addition, an increase in imports of agricultural products processed by agri-food firms leads to the reallocation of agri-food production from regions with good access to agricultural products towards those withlimited access.

Suggested Citation

  • Corinne Bagoulla & Emmanuelle Chevassus-Lozza & Karine Daniel & Carl Gaigné, 2010. "Regional production adjustment to import competition: evidence from the French agro-industry," Working Papers SMART 10-01, INRAE UMR SMART.
    • Handle: RePEc:rae:wpaper:201001
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    Cited by:

    1. Carl GAIGNÉ & Cathie LAROCHE DUPRAZ & Alan MATTHEWS, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(1), pages 91-130.
    2. Chevassus-Lozza, Emmanuelle & Gaigné, Carl & Le Mener, Léo, 2013. "Does input trade liberalization boost downstream firms' exports? Theory and firm-level evidence," Journal of International Economics, Elsevier, vol. 90(2), pages 391-402.
    3. Cosnard, Lionel, 2018. "Modeling the emergence of hysteresis in agri-food sectors," Conference papers 332955, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Xiong, Bo & Beghin, John C. & Marette, Stephan, 2013. "Gains to French champagne makers from tariff liberalization," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150003, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    trade openness; location; agri-food;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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