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The Factor Content of Heterogeneous Firm Trade

Author

Listed:
  • d’Artis Kancs

    (European Commission †Joint Research Centre (IPTS))

  • Pavel Ciaian

    (Catholic University of Leuven (LICOS))

Abstract
In this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate cross- country di§erences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade, we find that the first two hypotheses are confirmed by the ma jority of the developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organisation, both hypotheses are confirmed by the ma jority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organisation in the CEE.

Suggested Citation

  • d’Artis Kancs & Pavel Ciaian, 2009. "The Factor Content of Heterogeneous Firm Trade," Working Papers 2009.6, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2009.6
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    References listed on IDEAS

    as
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    3. Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2008. "Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44135, European Association of Agricultural Economists.
    4. D'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 305-317, May.
    5. D'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 305-317, May.
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    Cited by:

    1. Victor Rivas, 2012. "Structural Estimation of Variety Gains from Trade Integration in a Heterogeneous Firms Framework," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 55(2), pages 78-93.
    2. Ben Fradj, Nosra & Jayet, Pierre Alain & Rozakis, Stelios & Georganta, Eleni & Jędrejek, Anna, 2020. "Contribution of agricultural systems to the bioeconomy in Poland: Integration of willow in the context of a stylised CAP diversification," Land Use Policy, Elsevier, vol. 99(C).
    3. Pavel Ciaian & Dusan Drabik & Jan Falkowski & d'Artis Kancs, 2016. "Market Impacts of New Land Market Regulations in Eastern EU Member States," EERI Research Paper Series EERI RP 2016/02, Economics and Econometrics Research Institute (EERI), Brussels.

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    Keywords

    Factor content; bilateral trade; relative factor abundance; technological diferences; agriculture; transaction costs;
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