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Illicit Agricultural Trade

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Author Info
Ferrier, Peyton
Abstract

Agricultural and wildlife trade is subject to sudden, disruptive import restrictions arising from concerns over sanitary and phytosanitary safety and the conservation of natural resources. These restrictions can create significant international price differences that encourage the smuggling of goods across borders. This article presents an equilibrium model of smuggling where the supply and demand for smuggled goods depend on interregional price disparities in the presence of a trade ban. In this model, smuggling is more prevalent when demand and supply among trade partners is more inelastic or when there are fewer total trade partners at the time a trade ban is enacted. Applications are presented for regionalization, destruction of goods in government eradication programs, price support, stockpiling, and the development of substitutes. Regionalization may increase smuggling under certain production and consumption patterns.

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File URL: http://purl.umn.edu/45668
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Publisher Info
Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 37 (2008)
Issue (Month): 2 (October)
Pages:
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Handle: RePEc:ags:arerjl:45668

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Related research
Keywords: illicit trade; invasive species; smuggling; SPS Agreement; CITES; Endangered Species Act; regionalization; International Relations/Trade;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Martin, Lawrence & Panagariya, Arvind, 1984. "Smuggling, trade, and price disparity: A crime-theoretic approach," Journal of International Economics, Elsevier, vol. 17(3-4), pages 201-217, November. [Downloadable!] (restricted)
  2. Pitt, Mark M., 1981. "Smuggling and price disparity," Journal of International Economics, Elsevier, vol. 11(4), pages 447-458, November. [Downloadable!] (restricted)
  3. Ameden, Holly A. & Cash, Sean B. & Zilberman, David, 2007. "Invasive Species Management: Importers, Border Enforcement, and Risk," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9946, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Rajeev K. Goel, 2004. "Cigarette demand in Canada and the US-Canadian cigarette smuggling," Applied Economics Letters, Taylor and Francis Journals, vol. 11(9), pages 537-540, January. [Downloadable!] (restricted)
  5. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(4), pages 964-975, November. [Downloadable!] (restricted)
  6. Costello, Christopher & Springborn, Michael & McAusland, Carol & Solow, Andrew, 2007. "Unintended biological invasions: Does risk vary by trading partner?," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 262-276, November. [Downloadable!] (restricted)
  7. Richard A. Jensen & Jerry Thursby & Marie Thursby, 1991. "Smuggling, Camouflaging, and Market Structure," NBER Working Papers 2630, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Sheikh, Munir A., 1974. "Smuggling, production and welfare," Journal of International Economics, Elsevier, vol. 4(4), pages 355-364, November. [Downloadable!] (restricted)
  9. G. Cornelis van Kooten, 2006. "A Dynamic Bioeconomic Model of Ivory Trade: Details and Extended Results," Working Papers 2006-03, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group. [Downloadable!]
  10. Lynch, Lori & Lichtenberg, Erik, 2006. "Foreword: Special Issue on Invasive Species," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April. [Downloadable!]
  11. Heltberg, Rasmus, 2001. "Impact of the ivory trade ban on poaching incentives: a numerical example," Ecological Economics, Elsevier, vol. 36(2), pages 189-195, February. [Downloadable!] (restricted)
  12. Pimentel, David & Zuniga, Rodolfo & Morrison, Doug, 2005. "Update on the environmental and economic costs associated with alien-invasive species in the United States," Ecological Economics, Elsevier, vol. 52(3), pages 273-288, February. [Downloadable!] (restricted)
  13. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169. [Downloadable!] (restricted)
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