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Quality of institutions and the BRIC countries agro-food exports

Štefan Bojnec (Faculty of Management, University of Primorska, Koper, Slovenia)
Imre Fertő (Department of Agricultural Economics and Rural Development, Corvinus University of Budapest, Budapest, Hungary and Institute of Economics, Hungarian Academy of Sciences, Budapest, Hungary)
József Fogarasi (Financial Policy, Research Institute of Agricultural Economics, Budapest, Hungary and Faculty of Economics, Partium Christian University, Oradea, Romania)

China Agricultural Economic Review

ISSN: 1756-137X

Publication date: 26 August 2014

Abstract

Purpose

The purpose of this paper is to investigate the impacts of institutional quality (IQ) in exporting and importing countries on agro-food exports from the world's leading emerging economies: Brazil, the Russian Federation, India and China (BRIC countries).

Design/methodology/approach

Measuring is based on using the gravity trade model and econometric panel data analysis for the period 1998-2009.

Findings

Agro-food exports from the BRIC countries, particularly Brazil and China, have increased. The Russian Federation has experienced stagnating and volatile patterns. Brazil and India have strengthened market shares in the existing importing markets, while the Russian Federation has experienced severe deterioration. The export of existing products is more important than of new products. Agro-food exports are positively associated with IQ and the size of the gross domestic product in exporting and importing countries, but negatively with distance.

Research limitations/implications

Among IQ variables, the focus is on the indices of legal structure and security of property rights and freedom to trade internationally in agro-food importing countries and the BRIC exporting countries.

Practical implications

Different institutions and their quality can affect agro-food exports differently. The impact of institutions is not uniform across product groups.

Originality/value

This paper adds the impacts of IQ on agro-food exports. Except for processed products for final household consumption, agro-food exports from the BRIC countries are positively associated with the quality of the legal structure, the security of property rights and the freedom to trade internationally as IQ in exporting and importing countries.

Keywords

Acknowledgements

JEL Classifications — F14, Q17, C23, O57

This publication was generated as part of the COMPETE Project, Grant Agreement No. 312029 (www.compete-project.eu/), with the financial support from the European Community under the Seventh Framework Programme. The authors gratefully acknowledge the useful comments and suggestions made by Andrew Fieldsend, and the two anonymous journal reviewers.

Citation

Bojnec, Š., Fertő, I. and Fogarasi, J. (2014), "Quality of institutions and the BRIC countries agro-food exports", China Agricultural Economic Review, Vol. 6 No. 3, pp. 379-394. https://doi.org/10.1108/CAER-02-2013-0034

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Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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