Intra-Industry Trade, Multilateral Trade Integration and Invasive Species Risk
AbstractWe analyze the linkage between protectionism and invasive species (IS) hazard in the context of two-way trade and multilateral trade integration, two major features of real-world agricultural trade. Multilateral integration includes the joint reduction of tariffs and trade costs among trading partners. Multilateral trade integration is more likely to increase damages from IS than predicted by unilateral trade opening under the classic Heckscher-Ohlin-Samuelson (HOS) framework because domestic production (the base susceptible to damages) is likely to increase with expanding export markets. A country integrating its trade with a partner characterized by relatively higher tariff and trade costs is also more likely to experience increased IS damages via expanded domestic production for the same reason. We illustrate our analytical results with a stylized model of the world wheat market.
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Bibliographic InfoPaper provided by Development and Policies Research Center (DEPOCEN), Vietnam in its series Working Papers with number 18.
Length: 35 pages
Date of creation: 2007
Date of revision:
Invasive species; Exotic pest; Trade protection; Trade cost; Trade integration; Two-way trade; Intra-industry trade; Liberalization;
Other versions of this item:
- Anh Tu & John C. Beghin, 2006. "Intra-Industry Trade, Multilateral Trade Integration, and Invasive Species Risk," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp439, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Anh Tu & John C. Beghin, 2006. "Intra-Industry Trade, Multilateral Trade Integration, and Invasive Species Risk," Center for Agricultural and Rural Development (CARD) Publications 06-wp439, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- NEP-AGR-2008-01-05 (Agricultural Economics)
- NEP-ALL-2008-01-05 (All new papers)
- NEP-INT-2008-01-05 (International Trade)
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.:
- Aksoy, M. Ataman & Beghin, John C., 2005.
"Global Agricultural Trade and Developing Countries,"
Staff General Research Papers
12228, Iowa State University, Department of Economics.
- M. Ataman Aksoy & John C. Beghin, 2005. "Global Agricultural Trade and Developing Countries," World Bank Publications, The World Bank, number 7464, October.
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