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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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    Cited by:

    1. Yeboah, Osei-Agyeman & Shaik, Saleem & Wozniak, Shawn J. & Allen, Albert J., 2008. "Increased Cocoa Bean Exports under Trade Liberalization: A Gravity Model Approach," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6819, Southern Agricultural Economics Association.
    2. Zhang, Daowei & Nguyen, Ly, 2018. "Tariff and U.S. Paper Products Trade," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266771, Southern Agricultural Economics Association.
    3. Fock, A. & von Ledebur, O., 1998. "Struktur, Bestimmungsfaktoren und Potentiale des Agrarhandels zwischen Osteuropas und der EU," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 34.
    4. Jayson Beckman & Getachew Nigatu, 2021. "Do Political Factors Influence U.S. Crude Oil Imports?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 288-297.
    5. Kramb, Marc Christopher & Herrmann, Roland, 2009. "Wie wirken gemeldete SPS-Maßnahmen? Ein Gravitationsmodell des EU-Rindfleischhandels," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(04), pages 1-11, May.
    6. Jarvis, Lovell S. & Cancino, Jose P. & Bervejillo, Jose E., 2005. "The Effect of Foot and Mouth Disease on Trade and Prices in International Beef Markets," 2005 Annual meeting, July 24-27, Providence, RI 19424, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Eaton, Derek J.F., 2009. "Trade and Intellectual Property Rights in the Agricultural Seed Sector," 2009 Conference, August 16-22, 2009, Beijing, China 51782, International Association of Agricultural Economists.
    8. Enkang Li & Mengqiu Lu & Yu Chen, 2020. "Analysis of China’s Importance in “Belt and Road Initiative” Trade Based on a Gravity Model," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    9. Zhang, Daowei & Li, Yanshu, 2009. "Forest endowment, logging restrictions, and China's wood products trade," China Economic Review, Elsevier, vol. 20(1), pages 46-53, March.
    10. Tamaş Anca, 2020. "Why should the gravity model be taught in business education?," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 422-433, July.
    11. Amponsah, William A. & Ofori-Boadu, Victor, 2007. "Determinants of U.S. Textile and Apparel Trade," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-20.
    12. Thi Hong Hanh Bui & Qiting Chen, 2017. "An Analysis of Factors Influencing Rice Export in Vietnam Based on Gravity Model," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(3), pages 830-844, September.
    13. Aswini Kumar Mishra & Jigar N. Gadhia & N. Kubendran & Makara Sahoo, 2015. "Trade Flows between India and Other BRICS Countries: An Empirical Analysis Using Gravity Model," Global Business Review, International Management Institute, vol. 16(1), pages 107-122, February.
    14. Beard, Rodney, 2015. "Using a structural gravity model to assess the risk of livestock disease incursions in the UK," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212668, European Association of Agricultural Economists.
    15. Ochnio Luiza & Rokicki Tomasz & Koszela Grzegorz & Klepacki Bogdan, 2019. "Diversification of Lamb Meat Imports in EU Countries and its Trends," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 23(4), pages 96-111, December.
    16. Magdana Kondaridze & Jeff Luckstead, 2023. "Determinants of dairy‐product trade: Do subsidies matter?," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 857-873, September.
    17. Benavidez, Lauren & Xia, Tian, 2022. "A Gravity Model of Central American Organic Coffee Trade with the United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 53(1), March.
    18. Otgun, Hanifi (University of Nebraska Lincoln) & Beghin, John (University of Nebraska Lincoln) & Maximiliano, Fernando (StoneX), 2023. "The Bitter Taste of Brazil’s Temporary Import Ban on Robusta Coffee," Staff Papers 338799, University of Nebraska-Lincoln, Department of Agricultural Economics.
    19. Salahuddin & Javed Iqbal & Misbah Nosheen, 2020. "Economic & Cultural Distance & Regional Integration: Evidence from Gravity Model Using Disaggregated Data for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(2), pages 243-274.

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