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GTAP Resource #6337

"Modelling intra- and international trade in crop markets in Africa: An application to climate change adaptation"
by Janssens, Charlotte

Interdisciplinary research on the interaction between market integration and climate change, as well as economic studies on the distribution and specialization effects of market integration, highlight that location is key. Climate change impacts vary across space and time, and market integration essentially determines to what extent climatic changes in one location create a price signal in other areas. In this study, we develop a quantitative Ricardian model that represents intra- and international trade between African crop markets. The model is an extension of Ricardo’s theory of comparative advantage to many countries and subnational regions. We contribute to the existing Ricardian literature by building on spatial heterogeneity in crop productivity within subnational regions, which allows to represent individual crop trade patterns and directly estimate the productivity distribution parameters. While further refinements to the model are needed to represent the full intra- and international specialization pattern, a first application suggests that incorporating intra-national trade costs may affect the role of international trade in climate change adaptation, and without representation of sub-national trade results might be biased either upward or downward.

Resource Details (Export Citation) GTAP Keywords
Category: 2021 Conference Paper
Status: Not published
By/In: Presented during the 24th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2021
Created: Janssens, C. (4/15/2021)
Updated: Janssens, C. (6/14/2021)
Visits: 437
- Climate impacts
- Domestic policy analysis
- Food prices and food security
- Africa (East)
- Africa (Southern)

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