TY - JOUR
T1 - The Effects of EU-Ukraine Free Trade Agreement on the World’s Sunflower Complex
AU - Baryshpolets, Andrii
AU - Devadoss, Stephen
N1 - Funding Information:
The work of the second author was supported by the USDA National Institute of Food and Agriculture, Agricultural and Food Research Initiative Competitive Program, Agriculture Economics and Rural Communities, grant No. 2020-67023-30962.
Publisher Copyright:
© 2021 The Author(s).
PY - 2021/12/1
Y1 - 2021/12/1
N2 - We analyse the effects of the Deep and Comprehensive Free Trade Area between the European Union (EU) and Ukraine on the world's sunflower complex markets. We develop a spatial equilibrium model that incorporates the vertical and horizontal links between the primary commodity (seeds) and two final by-products (oil and meal). Our empirical analysis covers eight regions - the leading producers and consumers in the sunflower complex. This agreement causes EU's sunflower oil price to decrease by USD 17.42 per metric ton, benefiting EU's consumers by USD 81.4 million. However, EU's total net welfare decreases by USD 10.3 million, while Ukraine's increases by USD 32.7 million.
AB - We analyse the effects of the Deep and Comprehensive Free Trade Area between the European Union (EU) and Ukraine on the world's sunflower complex markets. We develop a spatial equilibrium model that incorporates the vertical and horizontal links between the primary commodity (seeds) and two final by-products (oil and meal). Our empirical analysis covers eight regions - the leading producers and consumers in the sunflower complex. This agreement causes EU's sunflower oil price to decrease by USD 17.42 per metric ton, benefiting EU's consumers by USD 81.4 million. However, EU's total net welfare decreases by USD 10.3 million, while Ukraine's increases by USD 32.7 million.
KW - free trade
KW - spatial equilibrium model
KW - sunflower complex
UR - http://www.scopus.com/inward/record.url?scp=85142872291&partnerID=8YFLogxK
U2 - 10.1093/erae/jbab017
DO - 10.1093/erae/jbab017
M3 - Article
VL - 48
SP - 1187
EP - 1223
JO - European Review of Agricultural Economics
JF - European Review of Agricultural Economics
IS - 5
ER -