IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/132238.html
   My bibliography  Save this article

Estimates of U.S. Regional Commodity Trade Elasticities of Substitution

Author

Listed:
  • Bilgic, Abdulbaki
  • King, Stephen A.
  • Lusby, Aaron K.
  • Schreiner, Dean F.

Abstract

Countries and regions within countries frequently import and export from the same standard industrial classification (SIC) groupings. In describing international trade, the Armington assumption recognizes that imported goods may substitute imperfectly for domestically produced goods. Imports and domestically produced goods may differ in quality or composition. Elasticities of import substitution have been extensively estimated for international trade but limited information is available on elasticities of substitution for regional imports. One h ypothesis in the literature is that international trade elasticities should be considered as lower bounds for regional trade elasticities presumably because of fewer non-price trade restrictions. This research estimates regional elasticities of import substitution for 20 two-digit groupings using commodity trade date in the U.S. The range in elasticities is from 0.45 to 2.80 depending on the characteristics of the SIC grouping. These results tend to refute the hypothesis that international trade elasticities are lower bounds for regional trade elasticities for comparable goods.

Suggested Citation

  • Bilgic, Abdulbaki & King, Stephen A. & Lusby, Aaron K. & Schreiner, Dean F., 2002. "Estimates of U.S. Regional Commodity Trade Elasticities of Substitution," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(2).
  • Handle: RePEc:ags:jrapmc:132238
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/132238
    Download Restriction: no

    References listed on IDEAS

    as
    1. Reinert, Kenneth A. & Roland-Holst, David W., 1992. "Armington elasticities for United States manufacturing sectors," Journal of Policy Modeling, Elsevier, vol. 14(5), pages 631-639, October.
    2. Vargas, Eliecer E. & Shreiner, Dean F., 1999. "Modeling Monopsony Markets With Regional CGE: The Oklahoma Forest Products Industry Case," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 29(2).
    3. Ricardo C. Gazel, 1996. "Free trade agreements and interregional labor migration: the case of the U.S. and Canada," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 30(4), pages 373-390.
    4. Clinton R. Shiells & Kenneth A. Reinert, 1993. "Armington Models and Terms-of-Trade Effects: Some Econometric Evidence for North America," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 299-316, May.
    5. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    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


    Cited by:

    1. Haddad, Eduardo A. & Hewings, Geoffrey J.D., 2005. "Market imperfections in a spatial economy: some experimental results," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 476-496, May.
    2. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier.
    3. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    4. repec:eee:rensus:v:77:y:2017:i:c:p:945-954 is not listed on IDEAS
    5. Baas, Timo & Melzer, Silvia, 2016. "The Macroeconomic Impact of Remittances: A Sending Country Perspective," Annual Conference 2016 (Augsburg): Demographic Change 145631, Verein für Socialpolitik / German Economic Association.
    6. Trink, Thomas & Schmid, Christoph & Schinko, Thomas & Steininger, Karl W. & Loibnegger, Thomas & Kettner, Claudia & Pack, Alexandra & Töglhofer, Christoph, 2010. "Regional economic impacts of biomass based energy service use: A comparison across crops and technologies for East Styria, Austria," Energy Policy, Elsevier, vol. 38(10), pages 5912-5926, October.
    7. Garey C. Durden & Patricia E. Gaynor, 2014. "Publishing in The Journal of Regional Analysis and Policy and an Evaluation (via Citation Counts) of JRAP’s Influence on Scholarship in Regional Science," Working Papers 14-07, Department of Economics, Appalachian State University.
    8. Durden, Garey C. & Gaynor, Patricia E., 2015. "Publishing in The Journal of Regional Analysis and Policy and an Evaluation (via Citation Counts) of JRAP’s Influence on Scholarship in Regional Science," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(2).

    More about this item

    Keywords

    International Relations/Trade;

    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:ags:jrapmc:132238. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/mcrsaea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.