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Abstract

We use 6-digit bilateral trade data to document the evolution on the extensive and intensive product margins of agri-food trade in the EU over the period 2000 and 2015. In line with previous research our results confirm the importance of extensive margin in the EU’s agri-food trade. We show that importance of margins may vary according to product differentiations. Econometric analysis reveals that drivers are similar for extensive and intensive margins. In addition, the impacts of trade cost variables differs between extensive and intensive margins according to product differentiations. Our results are relatively robust to alternative definitions of trade margins and product classifications.

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