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The Effects of Biotechnology Policy on Trade and Growth

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  • Oehmke, James F.
  • Maredia, Mywish K.
  • Weatherspoon, Dave D.

Abstract

Despite the clear influence of European Union biotechnology restrictions on trade patterns, very little work has been done to model these influences or their long-run effects. This paper presents an economic trade theory model of biotechnology, biotechnology research and development (R&D), and biotechnology regulation. The model analyzes the impact of European Union consumer preferences on production and consumption of biotechnology products, the level and national origin of biotechnology R&D, trade patterns, and growth. The results indicate that developing countries may become the major producers of biotechnology agricultural products if they can establish the necessary legal infrastructure; and that European biotechnology regulations effectively act as a capital subsidy to developing countries.

Suggested Citation

  • Oehmke, James F. & Maredia, Mywish K. & Weatherspoon, Dave D., 2001. "The Effects of Biotechnology Policy on Trade and Growth," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 2(2), pages 1-14.
    • Handle: RePEc:ags:ecjilt:23872
    DOI: 10.22004/ag.econ.23872
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    References listed on IDEAS

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    1. Julie A. Caswell, 2000. "An evaluation of risk analysis as applied to agricultural biotechnology (with a case study of gmo labeling)," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 115-123.
    2. William A. Kerr, 1999. "International Trade in Transgenic Food Products: A New Focus for Agricultural Trade Disputes," The World Economy, Wiley Blackwell, vol. 22(2), pages 245-259, March.
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    Cited by:

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