• Login
    View Item 
    •   Home
    • Massey Documents by Type
    • Theses and Dissertations
    • View Item
    •   Home
    • Massey Documents by Type
    • Theses and Dissertations
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Trade cost and its impact on agri-food trade growth among China, EU and ASEAN : in partial fulfilment of the requirement for the degree of Master of AgriCommerce, Massey University, Palmerstone North, New Zealand

    Icon
    View/Open Full Text
    01_front.pdf (108.5Kb)
    02_whole.pdf (497.0Kb)
    Export to EndNote
    Abstract
    Trade cost is broadly defined to include all costs incurred in getting a good to a final user other than the marginal cost of producing the good itself. According to Anderson and van Wincoop (2003), a rough estimate of the tax equivalent trade costs for industrialized countries is 170 percent. While compared to industrial products, agricultural goods suffer more from trade cost due to its low value to volume ratio and perishable characteristic as well as high protection in both developed and developing economies. By using the trade cost index developed by Dennis Novy (2013), this study examines the trade costs and its relationship with trade growth among China, EU, and ASEAN in agricultural sector. The results indicate that first, although the bilateral agricultural trade among these three economies have been growing steadily over last fifteen years, their trade costs are still high. In particular, the average trade cost between China and EU is about 633 percent tax equivalent. Secondly, economic growth is still the key driver of trade expansion. The contribution of trade cost reduction varies among trading pairs. In the case of China & ASEAN and EU & ASEAN, its impact is limited. But, in the case of China and EU, it contributes over half of the overall trade growth. Combined with the fact that China now has converted from a net exporter to a net importer of EU’s agricultural products, a further trade liberalization between these two could possibly increase bilateral trade significantly. Thirdly, the reduction of multilateral trade barriers diverts large amount of bilateral trade. The trade diversion effect of regional trade agreement is one possible reason. Finally, compared to distance, which is a static number, the trade cost index has a better explanatory power. It is time sensitive, more comprehensive, and not hard to compute.
    Date
    2017
    Author
    Fang, Ling
    Rights
    The Author
    Publisher
    Massey University
    URI
    http://hdl.handle.net/10179/12817
    Collections
    • Theses and Dissertations
    Metadata
    Show full item record

    Related items

    Showing items related by title, author, creator and subject.

    • Icon
      Title:
      New Zealand's preferential trading arrangements : implications for the New Zealand dairy industry : a thesis presented in partial fulfilment of the requirements for the degree of Master of Applied Economics at the School of Economics and Finance, Massey University, Palmerston North, New Zealand 
      Author:
      Howard, Samuel David
      Date:
      2011
    • Icon
      Title:
      The definition of "Insider" in section 3 of the securities markets Act 1988: A review and comparison with other jurisdictions 
      Author:
      Su, Z.; Berkahn, M. A.
      Date:
      2003
    • Icon
      Title:
      An examination of the methods and effects of restricting external trade : with particular reference to the New Zealand experience (1938-68) : presented to the Faculty of Social Science, Massey University in partial fulfilment of requirements for the degree of Doctor of Philosophy 
      Author:
      Lane, P. A.
      Date:
      1974

    Copyright © Massey University
    | Contact Us | Feedback | Copyright Take Down Request | Massey University Privacy Statement
    DSpace software copyright © Duraspace
    v5.7-2023.7-7
     

     

    Information PagesContent PolicyDepositing content to MROCopyright and Access InformationDeposit LicenseDeposit License SummaryTheses FAQFile FormatsDoctoral Thesis Deposit

    Browse

    All of MROCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister

    Statistics

    View Usage Statistics

    Copyright © Massey University
    | Contact Us | Feedback | Copyright Take Down Request | Massey University Privacy Statement
    DSpace software copyright © Duraspace
    v5.7-2023.7-7