The role of free trade agreements and the agricultural share of the GDP in the EU’s external agricultural trade

2024/02/20 by Lienhart, Lydia Maria
#Agrarhandel #EU #Freihandelsabkommen #Keywords: gravity model #Schlagworte: Gravitationsmodell #agricultural trade #angewandte Ökonomie #applied economics #free trade agreement

paper · doi:10.15203/oega_32.13

Abstract

In this paper, I explore the role played by free trade agreements (FTAs) and the agricultural share of GDP (VAAGRI) in the EU’s external agricultural trade. I examined bilateral trade flows in 20 agricultural sectors between 243 countries over the period of 2000–2016, obtained from the International Trade and Production Database (ITPD-E), as well as the importer’s and exporter’s VAAGRI and an FTA dummy. The estimation provided by applying the gravity model of international trade shows that a larger proportion of the EU’s external trade in grains and fruits occurs with exporting countries which have a higher VAAGRI and that the amount of trade is not significantly larger in most agricultural sectors if an FTA exists between trading partners.

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