Modelling the factor content of agricultural trade
Pokrivcak, J.,Slovenska Polnohospodarska Univ., Nitra (Slovak Republic). Katedra Ekonomiky | Ciaian, P.,IPTS-JRC European Commission, Seville (Spain) | Kancs, A.,IPTS-JRC European Commission, Seville (Spain)
This article examines the factor content of agricultural trade in the Central and East European (CEE) transition countries. It relates the factor content of agricultural trade to the cross-country differences in technology stemming from different farm organisations in the CEE countries and to the differences in relative factor endowments. The relative factor endowments alone do not satisfactorily explain agricultural trade flows in the CEE countries. We find that transaction costs and market imperfections that affect the organisation of production also distort farm specialisation and hence the factor content of agricultural trade.
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