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Increased Cocoa Bean Exports under Trade Liberalization: A Gravity Model Approach

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Author Info
Yeboah, Osei-Agyeman
Shaik, Saleem
Wozniak, Shawn
Allen, Albert J.

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Abstract

Gravity models were developed to estimate the potential bilateral exports of cocoa under trade liberalization by the sixteen major cocoa producing countries to the US using panel data from 1989 to 2003. The results indicate that differences between resource endowment, relative size of economies, and the sum of bilateral GDP of U.S. and exporting countries are the major determinants. Thus, as trade is liberalized, farmers share of the world price of cocoa increases and this raises exports.

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Publisher Info
Paper provided by Southern Agricultural Economics Association in its series 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas with number 6819.

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Date of creation: 2008
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Handle: RePEc:ags:saeaed:6819

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Related research
Keywords: Gravity models; Bilateral exports; Market liberalization; Cocoa; Fixed Effects Model; Random Effects Model; Pooled O.L.S.; International Relations/Trade; Research Methods/ Statistical Methods; F10; F13;

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