Determinants of dairy?product trade: Do subsidies matter?

Given the recent changes in supply and demand of dairy products, many opportunities arise for exporting importing countries. This paper examines determinants dairy-product trade by applying Poisson Pseudo-Maximum Likelihood (PPML) method to gravity model using panel data on 49 235 countries 17 years from 2000 2016. The is estimated both interval dynamic analyses. results show that domestic subsidies have a modest, but significant, impact across models. For example, 1% increase leads roughly 0.02% an average country. Memberships agreements, market size factors, government institutions also positively affect trade. However, tariffs are insignificant main specification. Results lag-policy analysis disappears after second year distribution; whereas lead-policy analysis, suggest at least 3 anticipatory effects subsidies.