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The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture

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  • Miljkovic, Dragan
  • Shaik, Saleem

Abstract

This study addresses the impact of trade openness on technical efficiency in the U.S. agricultural sector. The results indicate that trade protectionism illustrated with a decrease in the share of agricultural imports in agricultural GDP led to an increase in technical efficiency. A change in the share of agricultural exports in agricultural GDP had no impact on technical efficiency. These results are partially consistent with the premise of the new trade theory, but also seem to be driven by the intricacies of the agricultural sector and agricultural policy in the US and internationally.

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File URL: http://purl.umn.edu/56334
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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida with number 56334.

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Date of creation: 2010
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Handle: RePEc:ags:saea10:56334

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Related research

Keywords: Agriculture; Technical Efficiency; Trade Openness; United States; International Relations/Trade; Production Economics; Q17;

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  1. Alcala, Francisco & Ciccone, Antonio, 2001. "Trade and Productivity," CEPR Discussion Papers 3095, C.E.P.R. Discussion Papers.
  2. Krishna G. Iyer & Alicia N. Rambaldi & Kam Ki Tang, 2008. "Efficiency externalities of trade and alternative forms of foreign investment in OECD countries," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 749-766.
  3. Hung-jen Wang & Peter Schmidt, 2002. "One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels," Journal of Productivity Analysis, Springer, vol. 18(2), pages 129-144, September.
  4. Miljkovic, Dragan & Jin, Hyun J. & Paul, Rodney, 2008. "The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 873-885.
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Cited by:
  1. Enerelt Murakami, 2013. "Efficiency and productivity of the Mongolian livestock sector in an open economy," Economics Bulletin, AccessEcon, vol. 33(4), pages 2617-2626.

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