The internationalisation of the Spanish food industry: the home market effect and European market integration
Abstract
The objective of this study was to analyse, from a long-term perspective, the factors determining the process of the internationalisation of the Spanish agrifood industry. The paper concentrates on the empirical verification of the existence of a home market effect in the food and drink industries in Spain and on the effects on trade flows of integration into the European Union. With this aim in mind, we took into account the latest contributions to the estimation of the gravity equation for a sample of export flows from 13 agrifood subsectors between 1970 and 2012, with a destination of 175 markets. From the results of the study the existence of the “home market effect” stands out as the determining factor of the increasing process of internationalisation in the majority of the subsectors of the food industry. On this point, the presence of this effect is remarkable in the most dynamic industries, where the process of restructuring caused by the development of the internal market was more intense. Furthermore, the influence of the process of European integration has been shown by the literature to be a very important factor. Our results qualify in part the results of previous studies, since the positive effect appeared later than expected. The positive effects did not appear until the completion of the process of transition by the dismantling of the barriers established in the treaty of accession to the European Union.
Downloads
References
Albisu LM, Gracia A, 2002. La industria agroalimentaria española ante la ampliación de la UE. Economía Industrial 344: 99-110.
Ameur M, Gil JM, 2003. Estrategias empresariales y propensión exportadora de la industria agroalimentaria catalana y española. Econ Agrar Recurs Nat 3(6): 107-127.
Anderson JE, 1979. A theoretical foundation for the gravity equation. Am Econ Rev 69: 106-116.
Anderson JE, van Wincoop E, 2003. Gravity with gravitas: A solution to the border puzzle. Am Econ Rev 93:170-192. http://dx.doi.org/10.1257/000282803321455214
Antràs P, Segura R, Rodríguez D, 2010. Firms in international trade (with an application to Spain). SERIEs Invited Lecture at the XXXV Simposio de la Asociación Española de Economía, 16-18 Dec.
Baier SL, Bergstrand JH, 2007. Do free trade agreements actually increase members' international trade? J Int Econ 71: 72-95. http://dx.doi.org/10.1016/j.jinteco.2006.02.005
Bergstrand JH, 1985. The gravity equation in international trade: some microeconomic foundations and empirical evidence. Rev Econ Stat 67: 474-481. http://dx.doi.org/10.2307/1925976
Bergstrand JH, 1989. The generalised gravity equation, monopolistic, and the factor-proportions theory in international trade. Rev Econ Stat 71: 143-153. http://dx.doi.org/10.2307/1928061
Bernard AB, Jensen JB, Redding SJ, Schott PK, 2007. Firms in international trade. J Econ Perspect 21(3):105-30. http://dx.doi.org/10.1257/jep.21.3.105
Blanes JV, Martín C, 2000. The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain. Weltwirtschaftliches Archiv 136(3): 423-441. http://dx.doi.org/10.1007/BF02707288
Blanes Cristobal JV, Milgram BJ, 2009. Productividad de las empresas y papel de los costes irrecuperables en la elección de mercados lejanos. Evidencia para las industrias manufactureras españolas. Revista de Economía Industrial 373: 73-86.
Briz Escribano J, de Felipe Boente I, Briz de Felipe T, 2010. Funcionamiento y transparencia en la cadena de valor: aplicación al caso del aceite de oliva en España. Revista de Estudios Empresariales, segunda época 1: 32-53.
Chevassus-Lozza E, Latouche K, 2012. Firms, markets and trade costs: access of French exporters to European agri-food markets. Eur Rev Agric Econ 39 (2): 257-288. http://dx.doi.org/10.1093/erae/jbr009
Clar E, 2008 La soberanía del industrial. Industrias del complejo pienso-ganadero e implantación del modelo de consumo fordista en España: 1960-1975. Revista de Historia Industrial 36: 133-165.
Clar E, Pinilla V, Serrano R, 2015. El comercio agroalimentario español en la segunda globalización, 1951-2011. Historia Agraria 63: 183-213.
Claver ND, Castejón CF, Gracia FS, 2011. The home market effect in the Spanish industry, 1965-1995. Annals of Regional Science 46(2): 379-396. http://dx.doi.org/10.1007/s00168-009-0338-z
Collantes F, 2014. La evolución del consumo de productos lácteos en España, 1952-2007. Revista de Historia Industrial 55: 103-134.
Contreras JM, Bacaria J, 2000. Evaluación del impacto de la integración en los flujos comerciales agrarios de España. Rev Estud Agrosoc Pesqu 187: 63-86.
Deardoff A, 1998. Determinants of bilateral trade: does gravity work in a neoclassical world? In: The Regionalization of the World Economy
; Frankel JA (ed.). University of Chicago Press, Chicago. Available in http://www.cepii.fr/CEPII/
Delgado-Gómez JM, Ramírez-Alesón M, Espitia-Escuer M, 2004. Intangible resources as a key factor in the internationalisation of Spanish firms. J Econ Behav Org 53(4): 477-494. http://dx.doi.org/10.1016/j.jebo.2002.11.001
Domínguez R, 2000. Las transformaciones en el sector ganadero en España (1940-1985). Ager 1: 47-83.
Eaton JS, Kortum S, 2002. Technology, geography and trade. Econometrica 70(5): 1741-1779. http://dx.doi.org/10.1111/1468-0262.00352
Egger P, 2002. An econometric view on the estimation of gravity models and the calculation of trade potentials. The World Economy 25: 297-312. http://dx.doi.org/10.1111/1467-9701.00432
Evenett SJ, Keller W, 2002. On theories explaining the success of the gravity equation. J Polit Econ 110(2): 281-316. http://dx.doi.org/10.1086/338746
Fariñas JC, Martín-Marcos A, 2007. Exporting and economic performance: firm-level evidence of Spanish manufacturing. The World Economy 30(4): 618-646. http://dx.doi.org/10.1111/j.1467-9701.2007.01007.x
Feenstra RC, Markusen JA, Rose AK, 1998. Understanding the home market effect and the gravity equation: the role of differentiating goods. NBER Working Paper 6804, Cambridge.
Feenstra RC, Markusen JA, Rose AK, 2001. Using the gravity equation to differentiate among alternatives theories of trade. Can Econ 34(4): 430-447. http://dx.doi.org/10.1111/0008-4085.00082
Fernández-Núñez MT, 2000. La industria agroalimentaria en España: características generales y comportamiento empresarial. Boletín Económico de ICE 2657: 17-27.
Food Drink Europe, 2012. Data & trends of the European food and drink industry 2011. Confederation of the Food and Drink Industries of the EU, Brussels, Belgium.
Galdeano‐Gómez E, 2010. Exporting and environmental performance: a firm‐level productivity analysis. The World Economy 33(1): 60-88. http://dx.doi.org/10.1111/j.1467-9701.2009.01188.x
Gamallo RN, 2004. Una panorámica sobre los estudios empíricos acerca del comercio intraindustrial español. Información Comercial Española ICE 817: 11-22.
Gil‐Pareja S, Llorca‐Vivero R, Martínez‐Serrano JA, Oliver‐Alonso J, 2005. The border effect in Spain. The World Economy 28(11): 1617-1631. http://dx.doi.org/10.1111/j.1467-9701.2005.00749.x
Gil-Pareja S, Llorca-Vivero R, Martínez-Serrano JA, 2014. Do nonreciprocal preferential trade agreements increase beneficiaries' exports? J Develop Econ 107(C): 291-304. http://dx.doi.org/10.1016/j.jdeveco.2014.01.002
Greenaway D, Milner C, 1983. On the measurement of intra-industry trade. Econ J 93(372): 900-908. http://dx.doi.org/10.2307/2232755
Grubel H, Lloyd PJ, 1975. Intra-industry trade: the theory and measurement of international trade in differentiated products. Macmillan, London.
Guillén MF, 2004. La internacionalización de las empresas españolas/ The Internationalization of Spanish Enterprises. ICE Historia Empresarial 812: 211-224.
Haq ZU, Meilke K, Cranfield J, 2012. Selection bias in a gravity model of agrifood trade. Eur Rev Agric Econ 40(2): 331-60. http://dx.doi.org/10.1093/erae/jbs028
Helpman E, Krugman PR, 1985. Market structure and foreign trade; increasing returns, imperfect competition, and the international economy. MIT Press, Cambridge, MA, USA.
INE, 2012. Encuesta industrial de empresas. Instituto Nacional de Estadística, Gobierno de España.
Instituto Internacional San Telmo y Rabobank, 2004. Ganar dimensión: Una necesidad para la industria agroalimentaria española. Federación Española de Industrias de la Alimentación y Bebidas (FIAB), Madrid.
Klein MW, Shambaugh JC, 2006. Fixed exchange rates and trade. J Int Econ 70: 359-383. http://dx.doi.org/10.1016/j.jinteco.2006.01.001
Krugman PR, 1980. Scale economies, product differentiation, and the pattern of trade. Am Econ Rev 70(5): 950-59.
Martínez MG, Burns J, 1999. Sources of technological development in the Spanish food and drink industry. A "supplier‐dominated" industry? Agribusiness 15(4): 431-448. 3.0.CO;2-0" target="_blank">http://dx.doi.org/10.1002/(SICI)1520-6297(199923)15:4<431::AID-AGR1>3.0.CO;2-0
Martínez MG, Briz J, 2000. Innovation in the Spanish food & drink industry. Int Food Agribus Manage Rev 3(2): 155-176. http://dx.doi.org/10.1016/S1096-7508(00)00033-1
Martínez-Carrión, JM, Medina-Albaladejo FJ, 2010. Change and development in the Spanish wine sector, 1950–2009. J Wine Res 21(1): 77-95. http://dx.doi.org/10.1080/09571264.2010.495856
Mátyás L, 1997. Proper econometric specification of the gravity model. The World Economy 20: 363-369. http://dx.doi.org/10.1111/1467-9701.00074
Mátyás L, 1998. The gravity model: Some econometric considerations. The World Economy 21: 397-401. http://dx.doi.org/10.1111/1467-9701.00136
Medina-Albaladejo FJ, 2010. External competitiveness of Spanish canned fruit and vegetable businesses during the second half of the twentieth century. Business History 52(3): 417-434. http://dx.doi.org/10.1080/00076791003721845
Melitz MJ, 2003. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71: 1695-1725. http://dx.doi.org/10.1111/1468-0262.00467
Melitz MJ, Ottaviano GIP, 2008. Market size, trade, and productivity. Rev Econ Stud 75(1): 295-316. http://dx.doi.org/10.1111/j.1467-937X.2007.00463.x
Navaretti G, Bugamelli M, Schivardi F, Altomonte C, Horgos D, Maggioni D, 2011. The global operations of European firms. The second Efige policy report. Bruegel Blueprint Series. Available in http://econpapers.repec.org/bookchap/brebluprt/581.htm.
Olper A, Pacca L, Curzi D, 2014. Trade, import competition and productivity growth in the food industry. Food Policy 49: 71-83. http://dx.doi.org/10.1016/j.foodpol.2014.06.004
Peinado-Gracia ML, 1985. El consumo y la industria alimentaria en España. MAPA, Madrid, 453 pp.
Pinilla V, Ayuda MI, 2002. The political economy of the wine trade: Spanish exports and the international market, 1890–1935. Eur Rev Econ Hist 6(1): 51-85. http://dx.doi.org/10.1017/S1361491602000035
Pinilla V, Ayuda MI, 2009. Foreign markets, globalisation and agricultural change in Spain. In: Markets and agricultural change in Europe from the 13th to the 20th century; Pinilla V (ed.). pp: 173-208. Brepols Publ. Turnhout.
Pinilla V, Serrano R, 2009. Agricultural and food trade in the European Community since 1963. In: Fertile ground for Europe? The history of european integration and the common agricultural policy since 1945; Patel K (ed.). pp: 273-300. Nomos, Baden-Baden.
Pöyhönen P, 1963a. Toward a general theory of international trade. Ekonomiska Samfundets Tid-skirf, Tredje Serien, Argang 16: 69-77.
Pöyhönen P, 1963b. A tentative model for the volume of trade between countries. Welrwirtschajtliches Archiv 90(1): 93-100.
Rama R, Calatrava A, 2002. Nuevos procesos de industrialización rural en Espa-a. In: Agricultura y sociedad en el cambio de siglo; Gómez Benito C, González JJ (eds.). pp: 477-503. McGraw Hill, Madrid.
Ramon Muñoz R, 2010. Product differentiation and entry barriers: Mediterranean export firms in the American markets for olive oil prior to World War II. Business History 52(3): 390-416. http://dx.doi.org/10.1080/00076791003721613
Reig E, Picazo A, Hernández F, 1998. Precios y calidad en el comercio exterior español de productos agroalimentarios. Revista Agroalimentaria 4(7): 97-107.
Rodríguez-Zúñiga M, Soria R, 1989. Concentración e internacionalización de la industria agroalimentaria española: 1977-1987. Agricultura y Sociedad 52: 65-94.
Roland-Holst DW, Polo C, Sancho F, 1995. Trade liberalization and industrial structure in Spain: an applied general equilibrium analysis. Empirical Economics 20(1): 1-18. http://dx.doi.org/10.1007/BF01235155
Rose AK, 2000. One money, one market: estimating the effect of common currencies on trade. Economic Policy 30: 7-45. http://dx.doi.org/10.1111/1468-0327.00056
Rose AK, 2004. Do we really know that the WTO increases trade? Am Econ Rev 94(1): 98-114. http://dx.doi.org/10.1257/000282804322970724
Sanchís López A, Martínez Serrano JA, 1992. Las fusiones y adquisiciones en el sector de la alimentación. In: Economía española, cultura y sociedad. Homenaje a Juan Velarde; García Delgado JL & Serrano Sanz JM (coords.). pp: 727-762. Eudema, Madrid.
Santos Silva JMC, Tenreyro S, 2006. The log of gravity. Rev Econ Stat 88: 641-658. http://dx.doi.org/10.1162/rest.88.4.641
Santos Silva JMC, Tenreyro S, 2010. On the existence of the maximum likelihood estimates in Poisson regression. Econ Lett 107: 310-312. http://dx.doi.org/10.1016/j.econlet.2010.02.020
Sanz F, 2000. A kalman filter-gravity equation approach to assess the trade impact of economic integration: The case of Spain, 1986–1992. Weltwirtschaftliches Archiv 136(1): 84-110. http://dx.doi.org/10.1007/BF02707397
Sanz F, Gil JM, 2001. An assessment of the agricultural trade impact of Spain's integration into the EU. Can J Agric Econ 49(1): 53-69. http://dx.doi.org/10.1111/j.1744-7976.2001.tb00290.x
Selva MLM, Álvarez-Coque JMG, 2011. Impacto de los acuerdos de asociación en el comercio Euromediterráneo de frutas y hortalizas. Econ Agrar Recurs Nat 7(13): 27-48.
Serrano R, Pinilla V, 2011. Agricultural and food trade in European Union countries, 1963-2000: a gravity equation approach. Économies et Sociétés, Série Histoire économique quantitative, AF 43(1): 191-21.
Serrano R, Pinilla V, 2014. Changes in the structure of world trade in the agri‐food industry: the impact of the home market effect and regional liberalization from a long‐term perspective, 1963–2010. Agribusiness 30(2): 165-183. http://dx.doi.org/10.1002/agr.21355
Tinbergen J, 1962. Shaping the world economy; suggestions for an international economic policy. Twentieth Century Fund, New York.
UN-Comtrade, 2013. UN Statistical Division's Commodity Trade Statistics Database, New York. Available in http://comtrade.un.org/db/.
Wagner J, 2007. Exports and productivity: A survey of the evidence from firm-level data. The World Economy 30(1): 60-82. http://dx.doi.org/10.1111/j.1467-9701.2007.00872.x
WDI, 2013. World development indicators. The World Bank, Washington DC. Available in http://data.worldbank.org/data-catalog/world-development-indicators.
© CSIC. Manuscripts published in both the printed and online versions of this Journal are the property of Consejo Superior de Investigaciones Científicas, and quoting this source is a requirement for any partial or full reproduction.
All contents of this electronic edition, except where otherwise noted, are distributed under a “Creative Commons Attribution 4.0 International” (CC BY 4.0) License. You may read here the basic information and the legal text of the license. The indication of the CC BY 4.0 License must be expressly stated in this way when necessary.
Self-archiving in repositories, personal webpages or similar, of any version other than the published by the Editor, is not allowed.
