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



This study examines the reasons for changes in the composition of international trade in agricultural and food products. We use a Gravity Model to compare the impact of the key factors in bilateral agri-food trade, which we split into three main product groups following Rauch's classification of goods, between 1963 and 2010 for a representative sample of 40 countries. Our results show that the greater rhythm of growth in differentiated and reference priced products can be explained by the existence of the home market effect. Regional trade agreements have had an unequal impact on distinct product types, being especially important in the processed product markets. [JEL Classification: F14, N70, Q17]