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A Gravity Model of Central American Organic Coffee Trade with the United States

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  • Benavidez, Lauren
  • Xia, Tian

Abstract

This research analyzes the effects of economic and regulatory factors on the trade volume of organic Arabica green coffee from Central America to the United States. A gravity model with a panel data set is estimated using data from 2011 to 2020. We found that the major factors affecting the organic coffee trade were the organic price paid to exporters, U.S. per capita GDP, and the number of organic certified USDA-NOP organizations in the exporting countries. Central America can continue diversifying its production by adopting more organic certification schemes and expanding its market share in international markets.

Suggested Citation

  • Benavidez, Lauren & Xia, Tian, 2022. "A Gravity Model of Central American Organic Coffee Trade with the United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 53(1), March.
    • Handle: RePEc:ags:jlofdr:339667
    DOI: 10.22004/ag.econ.339667
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    References listed on IDEAS

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    3. Koo, Won W. & Karemera, David & Taylor, Richard, 1994. "A gravity model analysis of meat trade policies," Agricultural Economics, Blackwell, vol. 10(1), pages 81-88, January.
    4. Munisamy Gopinath & Rodrigo Echeverria, 2004. "Does Economic Development Impact the Foreign Direct Investment-Trade Relationship? A Gravity-Model Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 782-787.
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