Extensive Margins in Agriculture

Liapis, Peter S.

doi:10.1787/224422031753

Cited by 4 publications

(7 citation statements)

References 6 publications

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“…That is, 29% of the additional exports by richer countries are at the extensive margin (more items to more markets) while more than 70% is from higher volumes of the items exported (Table 22 first column). This result differs from those of HK who found that most of merchandise trade of richer countries is at the extensive margin and from Liapis (2009) where for 2006, exports of agricultural products by richer countries, (as opposed to only processed proucts) was mostly at the extensive margin.…”

Section: Resultscontrasting

confidence: 92%

“…22 In addition, we examine the impact of trade facilitation variables in exporting goods on the respective margins. Previous OECD work Liapis (2009) used similar methodology on all agricultural goods. In this report, the focus is on processed products.…”

Section: Intensive and Extensive Margin Of Processed Productsmentioning

confidence: 99%

“…For example, Brenton and Newfarmer (2007) find that 80% of total merchandise exports of 99 developing countries from 1995 to 2004 came at the intensive margin, while Amurgo-Pacheco and Pierola (2007) for a smaller set of countries but at greater product detail also find that the intensive margin is the dominant source of export growth. Focusing only on all agricultural product exports from 1996-2006 for 66 countries, Liapis (2009) finds that the intensive margin is dominant.…”

Section: Contribution Of Export Diversification To Export Growthmentioning

confidence: 99%

“…The third part examines trade decomposing into the intensive (more trade) and the extensive (more variety) margins using different methodologies. As in Liapis (2009), the first approach is cross sectional analysis utilizing Hummels and Klenow (2005) methodology to explain any differences in the export structure of processed products between small and large countries and quantify the relationship between a country's economic size and the contribution of the intensive and extensive margin to its overall exports of processed products. This is a follow-up to previous work that examined the contribution of the intensive and extensive margin to exports of all agricultural goods and will examine with a larger sample size and more recent trade data whether there is a difference between the contribution of the intensive and extensive margin for overall agricultural trade and trade in processed products.…”

mentioning

confidence: 99%

“…This is a follow-up to previous work that examined the contribution of the intensive and extensive margin to exports of all agricultural goods and will examine with a larger sample size and more recent trade data whether there is a difference between the contribution of the intensive and extensive margin for overall agricultural trade and trade in processed products. Furthermore, as in the earlier study (Liapis, 2009), the study will quantify the relationship between a country's size and whether its intensive margin consists of higher quality processed products (as manifested in higher prices), or larger volumes, or both or neither. In addition to the cross sectional, static, analysis, a dynamic analysis of each margin's contribution to overall export growth and for individual countries and products is examined.…”

mentioning

confidence: 99%

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Changing Patterns of Trade in Processed Agricultural Products

Liapis

2011

OECD Food, Agriculture and Fisheries Papers

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Trade in processed products, such as chocolates, steaks or wines, is dominated by high income OECD countries, although it is slowing down between these countries while growing very fast between emerging economies. Low income countries, however, account for a small share of such trade. Countries with a revealed comparative advantage in the processed agricultural markets are mostly high income countries and capture the majority of the trade, while many low income countries have a comparative advantage for other agricultural products. This study describes the patterns of trade, examines which countries have a comparative advantage and how this may have changed over time, analyses the level of productivity of countries’ export basket and its contribution to income, and determines whether trade has increased at the extensive or intensive margins. This study uses the gravity framework to gain a better understanding of the underlying factors for the international trade of products.trade facilitation, agricultural trade, comparative advantage, gravity framework, processed agricultural products, PRODY, EXPY, tariffs, extensive margin

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Section: Resultscontrasting

confidence: 92%

Section: Intensive and Extensive Margin Of Processed Productsmentioning

confidence: 99%

Section: Contribution Of Export Diversification To Export Growthmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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Changing Patterns of Trade in Processed Agricultural Products

Liapis

2011

OECD Food, Agriculture and Fisheries Papers

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Intensive and extensive margins of India's agricultural trade: implications for export diversification and development

Elumalai,

Kumar

2023

JADEE

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PurposeThis paper aims to analyze relative contribution of intensive margin (IM) and extensive margin (EM) to growth in India's agricultural exports for the period 2001 to 2020. It also analyses the determinants of IM and EMs through a standard gravity model.Design/methodology/approachThe study uses export data from United Nations Comtrade, which is accessed through World Integrated Trade Solution (WITS) software. Data for the period 2001 to 2020 were compiled for analysis using the Harmonized System (HS) of commodity classification system at the six-digit level. This study decomposed the contribution of IM and EM in the growth of Indian agricultural trade by using Hummels and Klenow's approach. After performing the export decomposition analysis, the authors analyze the factors influencing IM and EM by using the Tobit regression model and Poisson pseudo-maximum-likelihood (PPML) method of estimation.FindingsThe EM grew at 1.24% per annum, while the intensive margin (IM) increased by 0.23%. The contribution of growth at the EM increased from 58.8% in 2001 to 70.2% in 2020. Export growth along the IM was relatively high for animal products and agricultural raw materials, while growth at the EM was an important contributor to the export growth of horticultural and processed agricultural products. There was a positive and significant effect of the free trade agreement (FTA) on export margins.Research limitations/implicationsMore disaggregated commodity-specific studies on value chain analysis would provide valuable insights into the issues hindering exports and realizing the untapped export potential.Originality/valueThere is a scarcity of holistic and recent studies illustrating the role of IM and EMs in agricultural trade growth, covering a large number of commodities and geographies associated with Indian agricultural trade. The study would be helpful to the stakeholders in facilitating informed policy decisions.

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Decomposition of extensive and intensive margin impacts of trade policies

2021

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Using a multi‐region heterogeneous‐firm trade model, this paper develops a method to decompose volumes and values of domestic sales, bilateral trade, total production and consumption into their intensive and extensive margins. With the free‐entry condition, the extensive margin is further decomposed into two subcategories: operating‐extensive margin and entrance/exit‐extensive margin. This method can provide ex ante predictions on gains and losses in the margins of member and nonmember countries following a trade agreement. We apply our decomposition methods to quantitatively analyse the impacts of CETA between Canada and the European Union on the world processed food industry.

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Extensive Margins in Agriculture

Cited by 4 publications

References 6 publications

Changing Patterns of Trade in Processed Agricultural Products

Changing Patterns of Trade in Processed Agricultural Products

Intensive and extensive margins of India's agricultural trade: implications for export diversification and development

Decomposition of extensive and intensive margin impacts of trade policies

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