Cioffi, Antonio and Santeramo, Fabio Gaetano and Vitale, Cosimo (2009): The Price Stabilisation Effects of the EU import regime of fruit and vegetables: the case of tomatoes.
Download (452Kb) | Preview
The paper assesses the stabilization effects of the EU import regime for fresh fruit and vegetables based on the entry price system. The analysis is carried out on the EU prices of tomatoes and those of imports from Morocco, the main competing country on the EU domestic markets. It is based on the estimation of a threshold vector autoregressive econometric model that is shown capable of taking the workings of the import regime into account. The model shows that when prices of tomato imports are below the trigger entry prices the EU tomato market becomes isolated. However, the contribution of the import regime on price stabilization is rather limited. Since tomato imports from Morocco are granted zero tariff if their price is higher than the trigger entry price within a yearly quota that is completely filled, the largest contribution to market stabilization may well come from the size of the quota.
|Item Type:||MPRA Paper|
|Original Title:||The Price Stabilisation Effects of the EU import regime of fruit and vegetables: the case of tomatoes|
|Keywords:||fruit and vegetables, European Union , entry prices, trade preferences, price stabilization , tomatoes|
|Subjects:||C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C32 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy; Food Policy
|Depositing User:||Fabio Gaetano Santeramo|
|Date Deposited:||10. Oct 2010 01:52|
|Last Modified:||16. Feb 2013 01:00|
Agrosynergie (2008). Evaluation of the system of entry prices and export refunds in the fruit and vegetables sector. http://ec.europa.eu/agriculture/eval/reports/fruitveg/index_en.htm.
Bec, F., Salem, M.B., Carrasco, M. (2004). Tests for unit-root versus threshold specification with an application to the purchasing power parity relationship. Journal of Business & Economic Statistics 22, 382-395.
Chemnitz, C., Grethe, H. (2005). EU trade preferences for Moroccan tomato exports. Who benefits? Paper prepared for presentation at the 99th seminar of the European Association of Agricultural Economists. Copenhagen.
Cioffi, A., Dell’Aquila, C. (2004). The effects of trade policies for fresh fruit and vegetables of the European Union. Food Policy 29, 169-185.
Council Decision (1994). Council decision of 19 December 1994 on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Kingdom of Morocco on the regime for imports into the European Community of tomatoes and courgettes originating in and imported from Morocco (95/35/EC).
De Pablo Valenciano, J., Mesa, J. C. P., (2004). The competitiveness of Spanish tomato export in the European Union. Spanish Journal of Agricultural Research 2, 167-180.
Deaton, A., Laroque, G., (1992). On the Behaviour of Commodity Prices. The Review of Economic Studies 59, 1-23.
Dickey, D. A., Fuller, W. A., (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association 74, 427-431.
Fama, E. (1995). “Random walks in stock market prices”. Financial Analyst Journal 1, 75-80.
Garcia Alvarez-Coque, J. M.. (2002). Agricultural Trade and the Barcelona Process: Is Full Liberalization Possible?. European Review of Agricultural Economics 3, 399-422.
Goetz, L., Grethe, H., (2009). The EU entry price system for fresh fruits and vegetables – Paper tiger or powerful market barrier?. Food Policy 34, 81-93.
Green, W.H., (1997). Econometric Analysis. 3rd Ed. Upper Saddle River, Prentice Hall.
Grethe, H., Tangermann, S., (1998). The EU import regime for fresh fruit and vegetables after Implementation of the results of the Uruguay Round, Paper prepared for the Commodities and Trade Division FAO Economic and Social Department, Gottingen.
Hamilton, J. D., (1994). Time Series Analysis. Princeton, Princeton University Press.
Hummels, D., Skiba, A., (2004). Shipping the good apples out? An empirical confirmation of the Alchian-Allen conjecture. Journal of Political Economy 112, 1384-1402.
Kapetanios, G., Shin,,Y., Snell, A., (2003). Testing for a unit root in the nonlinear STAR framework. Journal of Econometrics 112, 359-379.
Kapetanios, G., Shin,Y. (2006). Unit root tests in three-regime SETAR models. Econometrics Journal 9, 252-278.
Nelson, C. R., Plosser, C. I., (1982). Trends and Random Walks in Macroeconomic Time Series: Some Evidence and Implications. Journal of Monetary Economics 10, 139-162.
Niglio, M., Vitale, C.D., (2008). Global stationarity and existence of threshold ARMA models. Working Paper, Department of Economics and Statistics, University of Salerno (Italy).
Official Journal of the European Union. (2004). Commission Regulation (EC) No 37/2004 of 9 January 2004 amending Council Regulation (EC) No 747/2001 as regards the Community tariff quotas and reference quantities for certain agricultural products originating in Morocco. January 10, 2004.
Philips P. C., Perron, P., (1988). Testing for a Unit Root in Time Series Regression. Biometrika 75, 335- 346.
Swinbank, A., Ritson, C., (1995). The impact of GATT agreement on fruit and vegetable policy. Food Policy 20, 339-357.
Thong, H., (1978). On a Threshold Model. In Chen C.H. (ed.) Pattern Recognition and Signal Processing, Sijthoff & Noordhoff, Amsterdam.
Thong, H., (ed.) (1990). Non Linear Time Series: A Dynamical System Approach. Claredon Press, Oxford.
Tsay, R.S., (1998). Testing and modeling multivariate threshold models. Journal of American Statistical Association 84, 1188-1202.