Intra-Industry Trade in Agricultural Products at Intra-EC Level: The Impact of the Common Agricultural Policy (CAP) Funds

Agricultural Economics Review, Vol. 12, Issue 2, 16-29, 2011

Posted: 6 Jan 2013

See all articles by Constantinos Katrakilidis

Constantinos Katrakilidis

Aristotle University of Thessaloniki - Department of Economics

Dimitri Mardas

Aristotle University of Thessaloniki - Department of Economics

Date Written: 2011

Abstract

This paper aims at specifying the main determinants of the intra-industry trade in agricultural products, associated with the funds of the Common Agricultural Policy (CAP) of the EC, and more precisely, with its “price support mechanism” and its “structural reform policy.” It presents CAP’s reformed main tools and mechanisms, and explains the choice of selected variables as determinants of intra-industry trade in agricultural products at intra-EC trade. The econometric analysis covers the period 1973-2005, following recent developments in time-series analysis employing the ARDL approach to cointegration. The empirical results provide evidence of Granger causal effects in both on short-run and long-run horizon running from CAP’s above mentioned policy tools to intra-industry trade.

Keywords: Common Agricultural Policy (CAP), Economic Integration, Intraindustry Trade

JEL Classification: Q17, F15, C32

Suggested Citation

Katrakilidis, Constantinos and Mardas, Dimitri, Intra-Industry Trade in Agricultural Products at Intra-EC Level: The Impact of the Common Agricultural Policy (CAP) Funds (2011). Agricultural Economics Review, Vol. 12, Issue 2, 16-29, 2011, Available at SSRN: https://ssrn.com/abstract=2196878

Constantinos Katrakilidis (Contact Author)

Aristotle University of Thessaloniki - Department of Economics ( email )

Thessaloniki, 54124
Greece

HOME PAGE: http://users.auth.gr/katrak

Dimitri Mardas

Aristotle University of Thessaloniki - Department of Economics ( email )

POB 188
540 06 Thessaloniki
Greece
30 31 996427 (Phone)
30 31 996426 (Fax)

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