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Determinants of World Demand for U.S. Corn Seeds: The Role of Trade Costs

Author

Listed:
  • Sampath Jayasinghe
  • John C. Beghin
  • GianCarlo Moschini

Abstract

The expansion of the U.S. corn seed trade is not well understood. This article econometrically investigates world demand for U.S. corn seeds, focusing on trade costs impeding exports, including transportation, tariffs, and sanitary and phytosanitary (SPS) regulations. The analysis estimates a derived demand for seed by foreign corn producers using data from 48 countries for the years 1989 to 2004. An SPS count variable captures shifts in the cost of seeds faced by foreign users. A sample selection framework accounts for the large presence of zero trade flows. All trade costs have a significantly negative impact on U.S. corn seed exports. Copyright 2010, Oxford University Press.

Suggested Citation

  • Sampath Jayasinghe & John C. Beghin & GianCarlo Moschini, 2010. "Determinants of World Demand for U.S. Corn Seeds: The Role of Trade Costs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 999-1010.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:4:p:999-1010
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq056
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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