IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/201007010700001505.html
   My bibliography  Save this paper

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

Author

Listed:
  • Jayasinghe, Sampath
  • Beghin, John C.
  • Moschini, Giancarlo

Abstract

The expansion of the U.S. corn seed trade is not well understood. This article econometrically investigates world demand for U.S. corn seeds, focusing on trade costs impeding exports, including transportation, tariffs, and sanitary and phytosanitary (SPS) regulations. The analysis estimates a derived demand for seed by foreign corn producers using data from 48 countries for the years 1989 to 2004. An SPS count variable captures shifts in the cost of seeds faced by foreign users. A sample selection framework accounts for the large presence of zero trade flows. All trade costs have a significantly negative impact on U.S. corn seed exports.

Suggested Citation

  • Jayasinghe, Sampath & Beghin, John C. & Moschini, Giancarlo, 2010. "Determinants of World Demand for U.S. Corn Seeds: The Role of Trade Costs," ISU General Staff Papers 201007010700001505, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201007010700001505
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/0126be13-0b73-47c6-a79b-7a65e89b6032/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chengyan Yue & John C. Beghin, 2017. "Tariff Equivalent And Forgone Trade Effects Of Prohibitive Technical Barriers To Trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 8, pages 139-150, World Scientific Publishing Co. Pte. Ltd..
    2. Gabriel J Felbermayr & Wilhelm Kohler, 2014. "Exploring the Intensive and Extensive Margins of World Trade," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 4, pages 115-148, World Scientific Publishing Co. Pte. Ltd..
    3. 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), pages 1-7.
    4. Chengyan Yue & John Beghin & Helen H. Jensen, 2017. "Tariff Equivalent Of Technical Barriers To Trade With Imperfect Substitution And Trade Costs," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 9, pages 151-164, World Scientific Publishing Co. Pte. Ltd..
    5. Martijn Burger & Frank van Oort & Gert-Jan Linders, 2009. "On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-inflated Estimation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(2), pages 167-190.
    6. 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.
    7. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis," Center for Agricultural and Rural Development (CARD) Publications 01-wp291, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, July.
    9. 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.
    10. John C. Beghin & Jean-Christophe Bureau, 2017. "Quantitative Policy Analysis Of Sanitary, Phytosanitary And Technical Barriers To Trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 3, pages 39-62, World Scientific Publishing Co. Pte. Ltd..
    11. John Christopher Beghin, 2017. "Nontariff Barriers," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 1, pages 3-11, World Scientific Publishing Co. Pte. Ltd..
    12. Anne-Célia Disdier & Keith Head, 2008. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 37-48, February.
    13. 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.
    14. Yue, Chengyan & Beghin, John C. & Jensen, Helen H., 2006. "AJAE Appendix: Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-9, November.
    15. Yue, Chengyan & Beghin, John C., 2009. "“AJAE Appendix: The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-5, January.
    16. 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.
    17. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    18. 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.
    19. 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.
    20. Martin, Will & Pham, Cong S., 2008. "Estimating the gravity model when zero trade flows are frequent," Working Papers eco_2008_03, Deakin University, Department of Economics.
    21. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    22. repec:lmu:muenar:20646 is not listed on IDEAS
    23. 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.
    24. Rodolfo Hoffmann & Ana Lucia Kassouf, 2005. "Deriving conditional and unconditional marginal effects in log earnings equations estimated by Heckman's procedure," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1303-1311.
    25. 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.
    26. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bo Xiong & John Beghin, 2017. "Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 6, pages 105-108, World Scientific Publishing Co. Pte. Ltd..
    2. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(1), pages 31-57.
    3. Ferrier, Peyton, 2014. "The Effects of Phytosanitary Regulations on U.S. Imports of Fresh Fruits and Vegetables," Economic Research Report 176199, United States Department of Agriculture, Economic Research Service.
    4. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    5. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    6. Xiong, Bo, 2012. "Three essays on non-tariff measures and the gravity equation approach to trade," ISU General Staff Papers 201201010800003536, Iowa State University, Department of Economics.
    7. Sophie Drogue & Jean-Philippe Gervais, 2010. "Guidelines and methodology to analyze the different case studies," Working Papers hal-02818030, HAL.
    8. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 4, pages 63-77, World Scientific Publishing Co. Pte. Ltd..
    9. Bo Xiong & Sixia Chen, 2014. "Estimating gravity equation models in the presence of sample selection and heteroscedasticity," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2993-3003, August.
    10. Marco Fugazza, 2013. "The Economics Behind Non-Tariff Measures: Theoretical Insights And Empirical Evidence," UNCTAD Blue Series Papers 57, United Nations Conference on Trade and Development.
    11. Xiong, Bo & Beghin, John C., 2011. "Disentangling the Demand-enhancing Effect and Trade-cost Effect of Technical Measures in Agricultural Trade among OECD countries," 2011: Agricultural Price Volatility, Trade Policy and Food Security in Developing Countries, December 2011, St. Petersburg, Florida 116898, International Agricultural Trade Research Consortium.
    12. Adrián Rabadán & Ángela Triguero, 2021. "Influence of food safety standards on trade: Evidence from the pistachio sector," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 489-514, July.
    13. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 595-617, September.
    14. Hejazi, Mina & Grant, Jason H. & Peterson, Everett, 2016. "Hidden Trade Costs? Maximum Residue Limits and US Exports to Trans-Atlantic and Trans-Pacific Trading Partners," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235847, Agricultural and Applied Economics Association.
    15. 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), pages 1-7.
    16. Elisaveta Archanskaia & Guillaume Daudin, 2012. "Heterogeneity and the Distance Puzzle," Documents de Travail de l'OFCE 2012-17, Observatoire Francais des Conjonctures Economiques (OFCE).
    17. repec:hal:spmain:info:hdl:2441/53r60a8s3kup1vc9ji21mi9p3 is not listed on IDEAS
    18. Anne-Célia Disdier & Stéphan Marette, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Nontariff Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 713-726.
    19. Bo Xiong & John Beghin, 2017. "Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 6, pages 105-108 World Scientific Publishing Co. Pte. Ltd..
    20. DeMaria Federica & Drogue Sophie & Lubello Pasquale, 2021. "The impact of pest risk management measures on trade: the case of apples from France and Chile," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-16, December.
    21. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:201007010700001505. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.