András Bence Szerb, Arnold Csonka, Imre Fertő
(published by the Czech Academy of Agricultural Sciences)
Online first article
Received: July 5, 2022
Accepted: September 15, 2022
Published online: October 21, 2022
Abstract: Globalisation is also having a profound impact on international agricultural trade. This study examines the impact of regional trade agreements (RTAs) and globalization on international maize trade using a gravity model for the period 1996–2020.
The results show that, despite globalization, distance has a larger negative impact on bilateral maize trade than on the manufacturing sector. It appears that distance remains an important factor in explaining trade flows in commodity markets, including maize. Our findings on the role of RTAs are in line with the results of previous studies: RTAs are generally preceded by a strengthening of bilateral trade relations. There is mutually positive feedback between the level of bilateral trade and RTA membership. However, the establishment of a common RTA membership and its trade-stimulating effects are not immediately visible.
Keywords: bilateral relationships; distance puzzle; econometrics; gravity model; international trade