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Fishy Trade: A study on fishmeal production in Peru

Janovskis, Viktoria LU (2016) NEKH01 20161
Department of Economics
Abstract
The aim of my study is to find out how Peru's recently signed free trade agreements have affected the volume of imports of fishmeal by the partner countries.
Popular Abstract
Peru is an extraordinary rich country when it comes to natural resources because of its environmental advantages. One of the most important export products, after minerals and metal, is the product fishmeal. Fishmeal is processed fish made from fish bones and offal. Peru export this product to 85 trading partners around the world that use it to feed other animal species such as pigs, chickens and other fish.

Peru, as itself and as part of Latin America, has a long history of trade agreements. The country has, especially in these recent years, engaged in many trade agreements with partners from Asia and Europe. In my study, I have chosen to investigate whether these trade agreements have generated greater import volumes of the product... (More)
Peru is an extraordinary rich country when it comes to natural resources because of its environmental advantages. One of the most important export products, after minerals and metal, is the product fishmeal. Fishmeal is processed fish made from fish bones and offal. Peru export this product to 85 trading partners around the world that use it to feed other animal species such as pigs, chickens and other fish.

Peru, as itself and as part of Latin America, has a long history of trade agreements. The country has, especially in these recent years, engaged in many trade agreements with partners from Asia and Europe. In my study, I have chosen to investigate whether these trade agreements have generated greater import volumes of the product fishmeal by the partner countries and thereby an increase in Peru’s fishmeal exports, or if it instead generates the opposite.

In order to analyse and quantify this information, I use the method of a gravity equation with data displaying the import volume of fishmeal for each partner country. Traditional trade theory foresees that a free trade agreement is expected to generate a positive outcome on exports for the good that the country is relatively abundant in. My regression had the opposite outcome proposing that, as Peru entered the agreements they generated a negative outcome on fishmeal exports meaning that Peru’s partner countries import less after the agreement had been set into force. I will discuss this outcome and analyse different reasons for the negative relationship between free trade agreements and fishmeal exports. (Less)
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author
Janovskis, Viktoria LU
supervisor
organization
course
NEKH01 20161
year
type
M2 - Bachelor Degree
subject
keywords
Peru, Free Trade Agreements, The Fishmeal Industry, Environmental Issues, Sustainable Development.
language
English
id
8871171
date added to LUP
2016-04-28 15:29:20
date last changed
2016-04-28 15:29:20
@misc{8871171,
  abstract     = {The aim of my study is to find out how Peru's recently signed free trade agreements have affected the volume of imports of fishmeal by the partner countries.},
  author       = {Janovskis, Viktoria},
  keyword      = {Peru,Free Trade Agreements,The Fishmeal Industry,Environmental Issues,Sustainable Development.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Fishy Trade: A study on fishmeal production in Peru},
  year         = {2016},
}