New directions of trade for the agri-food industry: a disaggregated approach for different income countries, 1963–2000

Latin American Economic Review

Table 3 Results of gravity equation for international trade in agri-food products disaggregated by country trade flows (based on their income level)

lnX _ijt	Agri-food trade PCSE estimation
lnX _ijt	S–S	S–N	N–N	N–S
lnY _it	−2.186***	−1.175***	−1.860**	0.368
lnY _jt	2.341***	2.987***	1.521***	0.842***
lnYpcp _it	3.847***	2.033***	2.385**	−0.442
lnYpcp _jt	−1.278**	−2.077**	−0.277	−0.667***
lnDist _ij
lnExcvol _ijt	0.002	0.002	−0.010*	−0.001
Border _ij
Language _ij
Both_in_MERCOSUR _ijt	0.157
Both_in_ANDEAN _ijt	0.104
Both_in_ASEAN _ijt	−0.074
Both_in_GSTP _ijt	0.094	0.154
Both_in_APEC _ijt	0.538**	0.261	0.184	−0.192
Both_in_NAFTA _ijt		0.189	0.146	0.760***
One_in_ NAFTA _ijt	0.778***	0.147	−0.248**	0.009
One_in_ EU _ijt		0.029	0.085*
One_in_ EFTA _ijt		−0.048	0.247***
One_in_ CER _ijt		0.091	0.001
Both_in_EU _ijt			0.694***
Both_in_EFTA _ijt			0.647***
Both_in_CER _ijt			−0.035
NRA _ijt	−0.005	0.028
Gatt _63-94	−0.166*	−0.145	−0.005	0.022
Gatt _94-00	0.177	0.209*	0.138	0.161
Constant	drop	drop	drop	drop
Country FE	Yes	Yes	Yes	Yes
No.observ.	10.061	10.597	14.401	15.121
R-squared.	0.512	0.630	0.835	0.567

Prais-Winsten estimation with PCSE and fixed effects. N–N: North–North trade, among high-income countries; N–S: North–South trade, exports from high-income countries to low-income countries; S–N: South-North trade, exports from low-income countries to high-income countries; S–S: South–South trade, among low-income countries
All variables are in logarithms, except binary variables (such as common border, language and different RTAs). ***, ** and * denote statistical significance at the 1, 5 and 10 % level respectively