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Effects of trade policy on technological innovation in agricultural markets - implications for the developing economies

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  • Lei, Lei

Abstract

An induced technological innovation, which may be biased as a result of policy orientation, can have a complex impact on the traded commodity, particularly in a market with highly differentiated products. Furthermore, especially for developing countries, most of which are based on agriculture, it is important to understanding that impact. This paper aims to study a recent policy change at the European Union, by using an Ex-Ante method and a displacement model. The policy change affected global apple exports, particularly for large exporters such as China, South Africa, Chile, and the United States. Considering data availability, the project focuses on the U.S. market to study the impact of the EU’s policy-induced, biased, and technological innovation in the U.S. agricultural industry. The results and policies implications are generally applicable to other major agricultural exporters, including those from developing countries.

Suggested Citation

  • Lei, Lei, 2018. "Effects of trade policy on technological innovation in agricultural markets - implications for the developing economies," IDE Discussion Papers 687, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper687
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    Cited by:

    1. Nith, Kosal & Ly, Singhong, 2018. "Reinvigorating Cambodian agriculture: Transforming from extensive to intensive agriculture," MPRA Paper 93091, University Library of Munich, Germany, revised 23 Dec 2018.
    2. Nith, Kosal & Ly, Singhong, 2018. "Reinvigorating Cambodian agriculture: Transforming from extensive to intensive agriculture," MPRA Paper 93086, University Library of Munich, Germany, revised 23 Dec 2018.

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    More about this item

    Keywords

    Technological innovations; Differentiated products; Input and output markets; Agricultural industries; Trade policy;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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