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

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  • 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. �

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 31493.

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Date of creation: 14 May 2010
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Publication status: Forthcoming in American Journal of Agricultural Economics
Handle: RePEc:isu:genres:31493

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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References

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  1. 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.
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Cited by:
  1. Xiong, Bo & Beghin, John C., 2010. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers 31595, Iowa State University, Department of Economics.
  2. Tran, Nhuong & Wilson, Norbert L.W. & Hite, Diane, 2012. "Choosing the best model in the presence of zero trade: a fish product analysis," 2012: New Rules of Trade?, December 2012, San Diego, California 142790, International Agricultural Trade Research Consortium.
  3. 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.
  4. 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.
  5. 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.
  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. 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.
  8. Federica DeMaria & Sophie Drogue, 2013. "EU trade regulation for baby food: protecting health or trade?," Working Papers 192807, Institut National de la Recherche Agronomique, France.
  9. 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.
  10. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
  11. 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.
  12. 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.
  13. 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.

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