Agricultural food and drink sector - impact of future UK Free Trade Agreement scenarios: research

Footnotes

i. Bilateral trade between two countries is proportional to size, measured by GDP, and inversely proportional to the geographic distance between them (i.e. the shorter the geographic distance, the greater the trade). See: https://www.nber.org/system/files/working_papers/w19285/w19285.pdf

2. It is important to note here that unlike gross value added, which is expected to decline in longer-term as a reflection of increased costs of production factors and their employment in other sectors of the economy, total volume of agricultural production is expected to increase due to productivity improvement and use of other inputs.