Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
GTAP FAQs
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #5648

"Melitz Meets Milk: The Impact of Quota Abolition on EU Dairy Export Competitiveness"
by Philippidis, George and Robert Waschik


Abstract
Despite evidence to the contrary, a common feature of almost all previous studies of EU milk quota abolition is the assumption of perfect competition (PC) in the dairy industry. Employing a global computable general equilibrium framework, an imperfectly competitive (IC) model variant offers insights into structural change (i.e., scale of output, firm entry/exit) and varietal diversity in the dairy industry, whilst a heterogeneous-firm Melitz extension enriches the analysis by endogenising the decision making process of domestic firms when exporting (or not) to specific foreign markets.
The results from a PC CGE model variant are found to be consistent with respected market outlooks and official data. Furthermore, PC and IC variants generate broadly similar trends – a result corroborated in a previous study of Italian dairy. Our IC model prediction of a ‘shakeout’ in EU dairy is tentatively supported by actual observations. Finally, as an industry characterised by significant product-innovation, increased extra-EU export orientation by remaining dairy firms increases varietal choice which further boosts EU dairy exports compared with the PC model variant.


Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Published
By/In: Journal of Agricultural Economics
Date: 2018
Version:
Created: Philippidis, G. (4/24/2018)
Updated: Batta, G. (4/24/2018)
Visits: 1,130
- Baseline development
- Agricultural policies
- European Union


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
No documents have been attached.

Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.