TY - JOUR
T1 - Trade and investment liberalization in the processed food market under the comprehensive economic and trade agreement
AU - Luckstead, Jeff
AU - Devadoss, Stephen
N1 - Funding Information:
Jeff Luckstead is an associate professor in the Department of Agricultural Economics and Agribusiness at the University of Arkansas. Stephen Devadoss is the Emabeth Thompson Endowed Professor in the Department of Agricultural and Applied Economics at Texas Tech University. The project was supported by the Agricultural and Food Research Initiative Competitive Program of the USDA National Institute of Food and Agriculture (NIFA), grant number 2016-11898854. We gratefully acknowledge the editorial coordination by the editor Dragan Miljkovic and constructive comments of two anonymous reviewers. Review coordinated by Dragan Miljkovic.
Publisher Copyright:
© 2019 Colorado State University. All rights reserved.
PY - 2019/5
Y1 - 2019/5
N2 - We investigate the impacts of Comprehensive Economic and Trade Agreement (CETA) liberalizations of trade and investment barriers on processed food markets. Using a four-region monopolistic competition model with heterogeneous food-processing firms that incorporates domestically operating, exporting, and multinational enterprise (MNE) firms, we quantify the effects of tariff elimination, fixed trade cost reduction, and foreign direct investment (FDI) cost reduction under CETA on prices, domestic sales, bilateral trade flows, affiliate sales, productivity, number of firms, and aggregate output. Our results highlight that trade liberalization promotes bilateral exports but reduces foreign affiliate sales, and, in contrast, lower FDI costs expand MNE affiliate sales but curtail bilateral exports.
AB - We investigate the impacts of Comprehensive Economic and Trade Agreement (CETA) liberalizations of trade and investment barriers on processed food markets. Using a four-region monopolistic competition model with heterogeneous food-processing firms that incorporates domestically operating, exporting, and multinational enterprise (MNE) firms, we quantify the effects of tariff elimination, fixed trade cost reduction, and foreign direct investment (FDI) cost reduction under CETA on prices, domestic sales, bilateral trade flows, affiliate sales, productivity, number of firms, and aggregate output. Our results highlight that trade liberalization promotes bilateral exports but reduces foreign affiliate sales, and, in contrast, lower FDI costs expand MNE affiliate sales but curtail bilateral exports.
KW - CETA
KW - Canada
KW - European Union
UR - http://www.scopus.com/inward/record.url?scp=85067395736&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85067395736
VL - 44
SP - 267
EP - 290
JO - Journal of Agricultural and Resource Economics
JF - Journal of Agricultural and Resource Economics
SN - 1068-5502
IS - 2
ER -