Processed food exports from developing countries: a gravity model analysis

Crawford School of Public Policy
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Event details

PhD Seminar (Econ)

Date & time

Friday 31 July 2020
11.00am–12.00pm

Venue

Online via Zoom

Speaker

Wanissa Suanin

This paper explores the drivers of processed food exports from developing countries. Using a new panel dataset from 2005–2017, I estimate a bilateral trade equation, in a gravity modelling framework, with poisson pseudo maximum likelihood (PPML). The findings indicate that food safety compliance, resource endowment of exporting countries, and income and market size of importing countries facilitate processed food exports from developing countries. Unlike traditional food trades, a trade-related logistic system in exporting countries can facilitate processed food trade, especially in processed fish and crustaceans and processed fruits and vegetables. Real exchange rate undervaluation in exporting countries can boost processed food exports to developed country markets. Other significant drivers include distance to markets and colonial ties.

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