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A gravity model analysis of meat trade policies

Author

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  • Won W. Koo
  • David Karemera
  • Richard Taylor

Abstract

The conventional gravity model is revised for a single commodity and applied to meat markets to determine factors affecting trade flows of meat. This study demonstrates that the gravity model for a single agricultural commodity can be parameterized more effectively by using time series and cross‐section data rather than cross‐section data alone. This study reveals that trade policies and subsidies used by exporting and importing countries, livestock production capacity in countries, and distances play an important role in determining trade flows of meat. Long‐term agreements achieve the highest performance toward enhancing international meat trade. Import quotas and the hoof‐and‐mouth disease on beef greatly impair meat trade.

Suggested Citation

  • Won W. Koo & David Karemera & Richard Taylor, 1994. "A gravity model analysis of meat trade policies," Agricultural Economics, International Association of Agricultural Economists, vol. 10(1), pages 81-88, January.
    • Handle: RePEc:bla:agecon:v:10:y:1994:i:1:p:81-88
    DOI: 10.1111/j.1574-0862.1994.tb00291.x
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