Advanced Search
MyIDEAS: Login

Determinants of World Demand for U.S. Corn Seeds: The Role of Trade Costs

Contents:

Author Info

  • Jayasinghe, Sampath J.D.Y.
  • Beghin, John C.
  • Moschini, GianCarlo

Abstract

The United States is a large net exporter of corn seeds. Seed trade, including that of corn, has been expanding, but its determinants are not well understood. This paper econometrically investigates the determinants of world demand for U.S. corn seeds with a detailed analysis of trade costs impeding export flows to various markets, including costs associated with distance, tariffs, and sanitary and phytosanitary (SPS) regulations. The analysis relies on a gravity-like model based on an explicit specification of derived demand for seed by foreign corn producers, estimated based on data from 48 countries and for the years 1989 to 2004. An SPS count variable is incorporated as a shifter in the unit cost of seeds faced by foreign users. A sample selection framework is used to account for the determination of which trade flows are positive. All trade costs matter and have had a negative impact on U.S. corn seed exports. Tariffs matter most, followed by distance and SPS measures. �

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/p11493-2010-05-14.pdf
Download Restriction: no

File URL: http://www.card.iastate.edu/publications/synopsis.aspx?id=1095
Download Restriction: no

Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 13018.

as in new window
Length:
Date of creation: 14 May 2010
Date of revision:
Publication status: Published in American Journal of Agricultural Economics 2010, vol. 92 no. 4, pp. 999-1010
Handle: RePEc:isu:genres:13018

Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Email:
Web page: http://www.econ.iastate.edu
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. David Hummels & Peter J. Klenow, 2002. "The Variety and Quality of a Nation's Trade," NBER Working Papers 8712, National Bureau of Economic Research, Inc.
  2. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Economie Internationale, CEPII research center, issue 87, pages 107-130.
  3. Burger, M.J. & van Oort, F.G. & Linders, G.J.M., 2009. "On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-Inflated Estimation," ERIM Report Series Research in Management ERS-2009-003-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  4. Anne-Célia Disdier & Keith Head, 2004. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," Development Working Papers 186, Centro Studi Luca d\'Agliano, University of Milano.
  5. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
  6. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements.
  7. Fernandez-Cornejo, Jorge & Caswell, Margriet, 2006. "The First Decade of Genetically Engineered Crops in the USA," Economic Information Bulletin 33897, United States Department of Agriculture, Economic Research Service.
  8. Chengyan Yue & John Beghin & Helen H. Jensen, 2006. "Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 947-960.
  9. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
  10. Disdier, Anne-Celia & Fontagne, Lionel & Mimouni, Mondher, 2008. "AJAE Appendix: The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
  11. Will Martin & Cong S. Pham, 2008. "Estimating the Gravity Model When Zero Trade Flows are Frequent," Economics Series 2008_03, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  12. Beghin, John C., 2006. "Nontariff Barriers," Staff General Research Papers 12703, Iowa State University, Department of Economics.
  13. Ghazalian, Pascal & Tamini, Lota & Larue, Bruno & Gervais, Jean-Philippe, 2007. "A Gravity approach to evaluate the significance of trade liberalization in vertically-related goods in the presence of non-tariff barriers," MPRA Paper 2744, University Library of Munich, Germany.
  14. Chengyan Yue & John C. Beghin, 2009. "Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 930-941.
  15. Gabriel J. Felbermayr & Wilhelm Kohler, 2006. "Exploring the Intensive and Extensive Margins of World Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 642-674, December.
  16. Linda Calvin & Barry Krissoff & William Foster, 2008. "Measuring the Costs and Trade Effects of Phytosanitary Protocols: A U.S.–Japanese Apple Example," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 120-135.
  17. Everett B. Peterson & David Orden, 2008. "Avocado Pests and Avocado Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 321-335.
  18. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  19. Yue, Chengyan & Beghin, John C., 2007. "The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 10000, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  20. Fernandez-Cornejo, Jorge, 2004. "The Seed Industry In U.S. Agriculture: An Exploration Of Data And Information On Crop Seed Markets, Regulation, Industry Structure, And Research And Development," Agricultural Information Bulletins 33671, United States Department of Agriculture, Economic Research Service.
  21. Felbermayr, Gabriel & Kohler, Wilhelm K., 2006. "Exploring the intensive and extensive margins of world trade," Munich Reprints in Economics 20610, University of Munich, Department of Economics.
  22. Felbermayr, Gabriel, 2006. "Exploring the Intensive and Extensive Margins of World Trade," Munich Reprints in Economics 20646, University of Munich, Department of Economics.
  23. Rohrbach, D. D. & Minde, I. J. & Howard, J., 2003. "Looking beyond national boundaries: regional harmonization of seed policies, laws and regulations," Food Policy, Elsevier, vol. 28(4), pages 317-333, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pramila Crivelli & Jasmin Gröschl, 2012. "The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows," Research Papers by the Department of Economics, University of Geneva 12092, Département des Sciences Économiques, Université de Genève.
  2. Li, Yuan & Beghin, John C., 2012. "A meta-analysis of estimates of the impact of technical barriers to trade," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 497-511.
  3. Bo Xiong & John Beghin, 2012. "Does European aflatoxin regulation hurt groundnut exporters from Africa?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(4), pages 589-609, September.
  4. Haq, Zahoor Ul & Meilke, Karl D. & Cranfield, John A.L., 2011. "The Gravity Model and the Problem of Zero`s in Agrifood Trade," Working Papers 116851, Canadian Agricultural Trade Policy Research Network.
  5. Karov, Vuko & Roberts, Donna & Grant, Jason H. & Peterson, Everett B., 2009. "A Preliminary Empirical Assessment of the Effect of Phytosanitary Regulations on US Fresh Fruit and Vegetable Imports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49345, Agricultural and Applied Economics Association.
  6. Xiong, Bo & Beghin, John C., 2010. "Aflatoxin Redux: Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61314, Agricultural and Applied Economics Association.
  7. Zhou, Minyu & Sheldon, Ian, 2013. "The Role of Intellectual Property Rights in Seed Technology Transfer through Trade – Evidence from U.S. Field Crop Seed Exports," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152368, International Agricultural Trade Research Consortium.
  8. Tran, N. & Wilson, N. & Hite, D., 2012. "Choosing the best model in the presence of zero trade: a fish product analysis," Working Papers, The WorldFish Center, number 40064, October.
  9. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
  10. Cairns, Alexander P. & Meilke, Karl D., 2012. "The Next-11 and the BRICs: Are They the Future Markets for Agrifood Trade?," Working Papers 122737, Canadian Agricultural Trade Policy Research Network.
  11. Rickard, Bradley J. & Lei, Lei, 2010. "How important are sanitary and phytosanitary barriers in international markets for fresh fruit?," Working Papers 126974, Cornell University, Department of Applied Economics and Management.
  12. DeMaria, F. & Drogué, S., 2013. "EU trade regulation for baby food: protecting health or trade?," Working Papers MOISA 201305, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France.
  13. Cairns, Alexander P. & Ker, Alan, 2013. "Unconditional Quantile Estimation: An Application to the Gravity Framework," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150399, Agricultural and Applied Economics Association.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:isu:genres:13018. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Bridges) The email address of this maintainer does not seem to be valid anymore. Please ask Stephanie Bridges to update the entry or send us the correct address.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.