From a different perspective, total imports from country H may decrease if the extent of the right turn from SH to SH (B) is significantly greater than that of the downward transfer of SF to SF (B). This paper shows the initial benefits and losses of ATRs and shows their redistribution after the adjustments in agricultural technology and productivity in the Entry and Export Member States. It is important to note the anania and McCalla (1995) study which examined the impact of certain domestic and trade policies, often used in developing countries, on the distribution of the benefits of agricultural technology improvements. Anania and McCalla (1995) have established, on the basis of a partial balance, a number of cases where political interventions increase, reduce or do not influence the overall benefits of agricultural technology improvements. However, in all cases, the distribution of the benefits of improving agricultural technology in policy interventions is different. Pavcnik (2002) examined the impact of trade liberalization, which results in the removal of import policy barriers to the productivity level of domestic production facilities in Chile. Pavcnik (2002) highlighted the increasing evolution of plant productivity in response to increased competition in the market due to the increase in the volume of imports. These responses were particularly important in the case of import-competing production sectors. Baldwin and Gu (2004) analyzed the reactions of Canadian production sites to the continued reduction of trade barriers between Canada and the rest of the world over time. They found that the continued removal of trade barriers has prompted more Canadian production sites to participate in export activities.
They also found positive feedback effects that have been observed since the increase in export activity towards the productivity level of individual plants. (a) Numerous empirical studies (z.B. Sarker and Jayasinghe, 2007; Grant and Lambert, 2008; Lambert and McKoy, 2009; Sun and Reed, 2010; Ghazalian et al., 2011) reported on the increasing impact of several ATRs on international agricultural trade between Member States (i.e. effects on trade formation) which often significantly outweigh the decreasing effects of these ATRs on international agricultural trade between Member States and third countries (i.e. effects on diversions). Column (ii) shows results when temporal effects are replaced by a time trend variable. The results remain consistent with the results presented in column i. The estimated coefficient of trend variables over time is positive and statistically significant at the 1% level. Finally, we appreciate the empirical model if we include a binary variable that takes the value of a variable for the current EFTA countries (Iceland, Norway and Switzerland) and zero for the rest. Therefore, the reference group for EU/EEC binary variables becomes the former EFTA Member States (i.e.
Austria, Finland and Sweden) before their accession to the EU in 1995. The results presented in the column (iii) are similar to those of the column (i). A regional trade agreement (RTA) is a treaty between two or more governments that sets the trade rules for all signatories. Examples of regional trade agreements include the North American Free Trade Agreement (NAFTA), the Central American-Dominican Free Trade Agreement (CAFTA-DR), the European Union (EU) and the Asia-Pacific Economic Cooperation (APEC). Thus, the net well-being effect of RTA training for country H will be equivalent after the emergence of this adaptation of agricultural technology and the increase in surface productivity [C-K-L- – GM-N- – CC-Y-M-VU]. This net well-being effect can be easily compared to the initial net well-being effect (i.e. before the occurrence of these revaluation reactions) which corresponds to the territory [CLK – GMN-LMVU].