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Global Implications From A North-North-South Trade Model: A Biotech Revolution

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Author Info

  • Weatherspoon, Dave D.
  • Oehmke, James F.
  • Wolf, Christopher A.
  • Naseem, Anwar
  • Maredia, Mywish K.
  • Hightower, Amie L.

Abstract

The emergence of agricultural biotechnology and policy responses to is altering global agricultural trade patterns. This paper models the effects of restrictive policies concerning the production and consumption of genetically modified agricultural products. The model relies on a Hecksher-Ohlin-Samuelson framework, adapted to include neo-Schumpeterian research and innovation. The model includes two 'North' countries, the United States (US) and the European Union (EU), and the 'South'. The EU is represented as prohibiting the production and consumption of biotech products, but not restricting biotech research relative to NA. Model results include implications for economic growth, welfare, and trade patterns for the EU, US and S, given the restrictive biotech policies of the EU.

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File URL: http://purl.umn.edu/11566
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Bibliographic Info

Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 11566.

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Date of creation: 1999
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Handle: RePEc:ags:midasp:11566

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Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
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Web page: http://www.aec.msu.edu/agecon/
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Keywords: International Relations/Trade; Research and Development/Tech Change/Emerging Technologies;

References

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  1. Mingxia Zhang, 1997. "The Effects of Imperfect Competition on the Size and Distribution of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1252-1265.
  2. Shu-Yu Huang & Richard J. Sexton, 1996. "Measuring Returns to an Innovation in an Imperfectly Competitive Market: Application to Mechanical Harvesting of Processing Tomatoes in Taiwan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 558-571.
  3. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
  4. Segerstrom, P.S., 1990. "Innovation, Imitation And Economic Growth," Papers 8818, Michigan State - Econometrics and Economic Theory.
  5. Dinopoulos, Elias & Oehmke, James F. & Segerstrom, Paul S., 1993. "High-technology-industry trade and investment : The role of factor endowments," Journal of International Economics, Elsevier, vol. 34(1-2), pages 49-71, February.
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