The entry price threshold in EU F&V sector: deterrence or effective barrier?

The paper investigates the effects of the entry price scheme for fresh fruit and vegetables. The analysis is conducted on the EU prices of tomatoes, lemons and apples for some of the main competing countries on the EU domestic markets: Morocco, Argentina, Turkey and China. The econometric analysis is based on testing and estimating a switching vector autoregressive model with endogenous threshold entry price level. The model shows the isolation effects and the accumulation of SIVs above the trigger entry price. This paper contributes to clarify the role played by the EPS in avoid or deter low priced imports from main EU partner Countries.Fruits and vegetables, Entry price system, trade policy, TVAR, Agricultural and Food Policy, F13, Q17, Q18,

Spatial price dynamics in the EU F&V sector: the cases of tomato and cauliflower

The paper explores the characteristics of spatial price dynamics for fresh vegetables. The analysis is carried out on selected EU prices for tomatoes and cauliflowers collected on some of the main production and consumption markets. It is based on the estimation of an time-varying threshold autoregressive econometric specification that is shown capable to underline the asymmetries in inter-Countries price transmission. The model shows that that horizontal price transmissions among net producer and net consumer markets is asymmetric and how such characteristic differs for markets closer to production areas or to consumption locations. This paper allowed to assess the average elapsing time for shocks to be transmitted among spatially separated markets, and, in particular, it shows the speed of transmission of price raises and price falls.price transmission, TVECM, vegetables

Spatial price dynamics in the EU F&V sector: the cases of tomato and cauliflower

The paper explores the characteristics of spatial price dynamics for fresh vegetables. The analysis is carried out on selected EU prices for tomatoes and cauliflowers collected on some of the main production and consumption markets. It is based on the estimation of an time-varying threshold autoregressive econometric specification that is shown capable to underline the asymmetries in inter-Countries price transmission. The model shows that that horizontal price transmissions among net producer and net consumer markets is asymmetric and how such characteristic differs for markets closer to production areas or to consumption locations. This paper allowed to assess the average elapsing time for shocks to be transmitted among spatially separated markets, and, in particular, it shows the speed of transmission of price raises and price falls.price transmission, TVECM, vegetables, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,

The price stabilization effects of the EU entry price scheme for fruits and vegetables

The paper assesses the stabilization effects of the EU import regime for fresh fruit and vegetables based on the entry price system. The analysis is carried out on the EU prices of tomatoes and lemons and those of imports from some of the main competing countries on the EU domestic markets: Morocco, Argentina and Turkey. It is based on the estimation of a threshold vector autoregressive econometric model that is shown capable of taking the workings of the import regime into account. The model shows that prices behave differently when import prices are above/below the trigger entry price. This paper allowed to highlight the cases for which the isolation effect of EPS seems reached and the resulting stabilization effects

The price stabilization effects of the EU entry price scheme for fruits and vegetables

The paper assesses the stabilization effects of the EU import regime for fresh fruit and vegetables based on the entry price system. The analysis is carried out on the EU prices of tomatoes and lemons and those of imports from some of the main competing countries on the EU domestic markets: Morocco, Argentina and Turkey. It is based on the estimation of a threshold vector autoregressive econometric model that is shown capable of taking the workings of the import regime into account. The model shows that prices behave differently when import prices are above/below the trigger entry price. This paper allowed to highlight the cases for which the isolation effect of EPS seems reached and the resulting stabilization effects.Fruit and vegetables; Entry price system; stabilisation effects; TVAR

The Price Stabilisation Effects of the EU import regime of fruit and vegetables: the case of tomatoes

The paper assesses the stabilization effects of the EU import regime for fresh fruit and vegetables based on the entry price system. The analysis is carried out on the EU prices of tomatoes and those of imports from Morocco, the main competing country on the EU domestic markets. It is based on the estimation of a threshold vector autoregressive econometric model that is shown capable of taking the workings of the import regime into account. The model shows that when prices of tomato imports are below the trigger entry prices the EU tomato market becomes isolated. However, the contribution of the import regime on price stabilization is rather limited. Since tomato imports from Morocco are granted zero tariff if their price is higher than the trigger entry price within a yearly quota that is completely filled, the largest contribution to market stabilization may well come from the size of the quota.fruit and vegetables, European Union , entry prices, trade preferences, price stabilization , tomatoes

On the Estimation of Supply and Demand Elasticities of Agricultural Commodites

The report provides a literature review on the topic of estimation of demand and supply elasticities. To this end, it starts the discussion by summarizing the main facets of production theory and consumer theory to introduce the concept of elasticities, with examples of different types of elasticities most utilized in the literature. Next, it discusses the identification problem in estimating elasticities, i.e. the issue of having to solve for unique values of the parameters of the structural model from the values of the parameters of the reduced form of the model. It summarizes various methodologies employed in the literature to solve this problem and gives practical examples. These solutions include, but are not limited to, using instrumental variables, adopting a recursive structure, holding demand constant, and imposing inequality constraints in order to restrict the domain of estimates.

Exploring the link among food loss, waste and food security: what the research should focus on?

AbstractFood loss and food waste are highly debated topics and likely to stay in the research agendas for the next decades. Their relevance is not only important for developing economies, but also for developed economies, especially due to the impact that loss and waste have on the status of food security. In the present editorial, I comment on how research agendas should be shaped in order to focus on emerging issues, and put emphasis on the topics closely connected to the emerging literature on the circular economy

Agritourism flows to Italy: an analysis of determinants using the gravity model approach

Tourism represents one of the most important income sources for Italy. In recent years, apart from “traditional” destinations, tourism supply is widely changing in order to satisfy the customers “love for variety” and valorise marginal resources, then new formulas are emerging (e.g. agritourism). This work aims to elaborate and estimate an econometric model able to adequately explain the size of agritourists flows to Italy from main partner countries using the gravity model approach that has been broadly applied to the analysis of international flows. In this work, the “basic” model has been enlarged and improved with the introduction of other explicative variables. The results has allowed to confirm empirical validity of the gravity model in studying international flows of any nature. Furthermore, the estimated econometric model represents a useful analytical instrument to describe, and, eventually, predict demand of foreign visitors for agritourist vacations in Italy.Gravity Model, Agritourism, Rural tourism, Tourism flows, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

New challenges and opportunities for Italian exports of table wines and high quality wines

Competition in international wine market has recently become more intense because of several factors and, in particular, the progressive reduction in world-wide consumption, the addition of new producing countries such as Australia, Chile, the USA and South Africa (the so called New World wine producers) and the increasing trade liberalization. In order to achieve a competitive advantage in the international marketplace, it is very important to identify which markets are characterized by bigger attractiveness. In particular, the ability of a producer, a region or a country to provide effective communication and promotion actions towards more profitable local markets is strategic in international trade. Italy, one of the first wine producing country in the world, exports its wines to almost all countries of the five continents. However, the five greater importing countries account for 70 percent of Italy’s total wine exports (the USA, Germany, the United Kingdom, Switzerland, and Canada) and so Italy shows only a moderate market diversification. In this paper, an econometric model able to explain the size of wine export flows from Italy to its main importing countries was elaborated and estimated. This model provides useful information that can help to identify the main growing markets where all participants in the wine supply-chain, such as private wineries, joint-ventures, regional and national agencies, and producers’ associations, can unite to concentrate product communication and promotional efforts. The model is an extended version of the “gravity model” that many economists believe a very powerful tool for international trade analysis. In fact, at the empirical level, the gravity model gives very robust estimates and provides a good fit to the observed data. The basic concept of the gravity model for trade analysis borrows the gravity equation from physics: the volume of trade between two countries is proportional to their economic “mass” and inversely proportional to their respective distance. In this work, the investigation about the features of Italian wine export flows is conducted through the estimation of two different econometric models; the first one is related to QWPDR and second one is related to table wine category. Both models derive from an extended version of the basic gravity model where dummies for groups of countries have been added. An important result is that Italy should increase the production of high quality wine because there are favorable conditions in place which would increase exportation. At the same time, Italy should decrease the production of table wine because its international demand is declining. Moreover, estimation results show that both QWPDR and table wine exportations are income elastic. Hence, if Italian wine producers intend to expand their exportations, it is natural to look at those countries where income growth is high but also constant and solid. It is interesting to highlight that, among countries with the highest income growth rates, there are three very big countries, China, Russia and India, where expansion possibilities for Italian wine exports are very attractive. Currently, these countries import less than 1% of total exports of Italian wine. At the same time, it is important to highlight that the main countries importing Italian wine (the United States, Germany, the United Kingdom, Switzerland, Canada, Japan and almost all western European countries) show a moderate but stable income growth and therefore it would be strategic to defend and consolidate Italian market shares against any possible aggressions by the new wine producing countries. The recent enlargement of the EU could represent a great opportunity for the exporters of Italian wine. In particular, it is interesting to note that all new EU members and, in particular, the Baltic Republics (Latvia, Estonia, Lithuania) show high income growth rates. In addition, as widely known, there are no customs barriers within the European Union but instead there is a common external tariff applied to imports from non-EU countries. Therefore, these countries represent very interesting, and as yet untapped, markets even if, in the next years, there are real possibilities to expand mainly table wine exports because the income, although rapidly increasing, remains still moderate.Italian Wine; Trade; Gravity model; Exports