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Regional Production Adjustment to Import Competition: Evidence from the French Agro‐Industry
Author(s) -
Bagoulla Corinne,
Chevassus-Lozza Emmanuelle,
Daniel Karine,
Gaigné Carl
Publication year - 2010
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aaq053
Subject(s) - production (economics) , competition (biology) , agriculture , business , agricultural economics , agribusiness , economics , international trade , agricultural productivity , wage , market economy , geography , ecology , macroeconomics , archaeology , biology
This paper evaluates the impact of increasing imports on the reallocation of agrifood production across regions within countries. From French data for the period 1995–2002, we show that regional agrifood production adjusts differently to increasing imports according to the region where the agrifood firms are located. Even though proximity to consumers is important, an increase in agrifood imports does not increase agrifood production with a high demand but makes low‐wage regions more attractive. In addition, an increase in imports of agricultural products processed by agrifood firms leads to the reallocation of agrifood production away from regions with good agricultural access and toward those with limited access to agricultural products.