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VOLUME IV
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SPRING 1996
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ECONOMIC INTEGRATION AND THE FOOD INDUSTRY: A STUDY OF THE MICRO-ECONOMIC EFFECTS
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AMPARO ROCA
Universidad de Valencia |
This paper presents the results of the estimation of the static effects of Spanish integration into the EC for a representative number of food industry sectors, adopting a desaggregate, ex-post and analytical approach and using the AIDS demand systems for the modelization of the imports, differentiating them according to their origin, but rejecting the hypotesis of separability between import demand and internal production. Forecasts of the Internal Market effects are also provided, obtained through the calculation of price and expenditure elasticities for each subsector and supplier and the simulation of welfare effects (compensating variation).
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Keywords: economic integration, static effects, food industry, import demand elasticities, welfare effects.
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