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

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  • 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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    Cited by:

    1. Bo Xiong & John Beghin, 2013. "Aflatoxin redux: Does European Aflatoxin regulation hurt groundnut exporters from Africa?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 40(5), pages 895-895, December.
    2. Federica DeMaria & Sophie Drogue, 2017. "EU Trade Regulation for Baby Food: Protecting Health or Trade?," The World Economy, Wiley Blackwell, vol. 40(7), pages 1430-1453, July.
    3. Cairns, Alexander P. & Ker, Alan P., 2013. "Unconditional Quantile Estimation: An Application to the Gravity Framework," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150399, Agricultural and Applied Economics Association.
    4. Grant, Jason & Peterson, Everett & Ramniceanu, Radu, 2015. "Assessing the Impact of SPS Regulations on U.S. Fresh Fruit and Vegetable Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), January.
    5. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    6. Tran, N. & Wilson, N. & Hite, D., 2012. "Choosing the best model in the presence of zero trade: a fish product analysis," Working Papers, The WorldFish Center, number 40064, September.
    7. Karov, Vuko & Roberts, Donna & Grant, Jason H. & Peterson, Everett B., 2009. "A Preliminary Empirical Assessment of the Effect of Phytosanitary Regulations on US Fresh Fruit and Vegetable Imports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49345, Agricultural and Applied Economics Association.
    8. De Matteis, Maria & Yu, Edward & Boyer, Christopher & Lewis, Karen, 2017. "Determinants of the Export Demand of U.S. Distillers Dried Grains with Solubles," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252668, Southern Agricultural Economics Association.
    9. Pramila Crivelli & Jasmin Groeschl, 2016. "The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows," The World Economy, Wiley Blackwell, vol. 39(3), pages 444-473, March.
    10. Straume, Hans-Martin, 2015. "Trade costs and Norwegian salmon export," Working Papers in Economics 06/15, University of Bergen, Department of Economics.
    11. Cairns, Alexander P. & Meilke, Karl D., 2012. "The Next-11 and the BRICs: Are They the Future Markets for Agrifood Trade?," Trade Policy Briefs 145971, Canadian Agricultural Trade Policy Research Network.
    12. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    13. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 4, pages 63-77 World Scientific Publishing Co. Pte. Ltd..
    14. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(1), pages 31-57.
    15. Bo Xiong & John Beghin, 2017. "Does European aflatoxin regulation hurt groundnut exporters from Africa?," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 16, pages 287-307 World Scientific Publishing Co. Pte. Ltd..
    16. Haq, Zahoor Ul & Meilke, Karl D. & Cranfield, John A.L., 2011. "The Gravity Model and the Problem of Zero`s in Agrifood Trade," Working Papers 116851, Canadian Agricultural Trade Policy Research Network.
    17. Jasmin Katrin Gröschl, 2013. "Gravity Model Applications and Macroeconomic Perspectives," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 48, November.
    18. Santeramo, Fabio Gaetano, 2014. "Promoting the international demand for agritourism – empirical evidence from a dynamic panel data model," MPRA Paper 59625, University Library of Munich, Germany, revised 01 Feb 2014.
    19. Byeong-il, Ahn & Younghyeon, Jeon, 2016. "Does tariff reduction have a positive effect on the world’s grain self-sufficiency?," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235578, Agricultural and Applied Economics Association.
    20. Zhou, Minyu & Sheldon, Ian M., 2013. "The Role of Intellectual Property Rights in Seed Technology Transfer through Trade – Evidence from U.S. Field Crop Seed Exports," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152368, International Agricultural Trade Research Consortium.
    21. Hejazi, Mina & Grant, Jason H. & Peterson, Everett, 2016. "Hidden Trade Costs? Maximum Residue Limits and US Exports to Trans-Atlantic and Trans-Pacific Trading Partners," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235847, Agricultural and Applied Economics Association.
    22. Saghaian, Yasser & Reed, Michael & Saghaian, Sayed, 2014. "Export Demand Estimation for U.S. Corn and Soybeans to Major Destinations," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162546, Southern Agricultural Economics Association.
    23. Rickard, Bradley J. & Lei, Lei, 2010. "How important are sanitary and phytosanitary barriers in international markets for fresh fruit?," Working Papers 126974, Cornell University, Department of Applied Economics and Management.
    24. Crivelli, Pramila & Gröschl, Jasmin, 2012. "SPS measures and trade: Implementation matters," WTO Staff Working Papers ERSD-2012-05, World Trade Organization (WTO), Economic Research and Statistics Division.

    More about this item

    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

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