IDEAS home Printed from https://ideas.repec.org/p/ags/aaea04/20032.html
   My bibliography  Save this paper

Intra-Industry Trade, Imperfect Competition, Trade Integration and Invasive Species Risk

Author

Listed:
  • Tu, Anh Thuy
  • Beghin, John C.

Abstract

We analyze the linkage between protectionism and invasive species hazard in the context of imperfect competition, two-way trade, and multilateral trade liberalization, three major actual features of agricultural trade and policies in the real world. We revisit the reciprocal-dumping model with differentiated products, adding trade and agricultural policies into the framework in the presence of invasive-species risk associated with agriculture. We look at joint reduction of agricultural tariffs. This type of trade integration is much more likely to increase the damage from invasive species than predicted by unilateral trade liberalization under the classical HOS framework. We document the non-monotonic relationship between policy (trade barriers and farm subsidies) and the expected damages from invasive species. We illustrate our analytical results with a stylized model of the world wheat market.

Suggested Citation

  • Tu, Anh Thuy & Beghin, John C., 2004. "Intra-Industry Trade, Imperfect Competition, Trade Integration and Invasive Species Risk," 2004 Annual meeting, August 1-4, Denver, CO 20032, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea04:20032
    DOI: 10.22004/ag.econ.20032
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/20032/files/sp04tu01.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.20032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Thomas F. Rutherford & E. Elisabet Rutstrom & David Tarr, 2014. "Morocco's free trade agreement with the EU: A quantitative assessment," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 17, pages 405-437, World Scientific Publishing Co. Pte. Ltd..
    3. John C. Beghin & Jean-Christophe Bureau, 2017. "Quantitative Policy Analysis Of Sanitary, Phytosanitary And Technical Barriers To Trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 3, pages 39-62, World Scientific Publishing Co. Pte. Ltd..
    4. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis," Center for Agricultural and Rural Development (CARD) Publications 01-wp291, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Jagdish Bhagwati (ed.), 2002. "Going Alone: The Case for Relaxed Reciprocity in Freeing Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025213, April.
    6. Devarajan, Shantayanan & Go, Delfin S. & Hongyi Li, 1999. "Quantifying the fiscal effects of trade reform," Policy Research Working Paper Series 2162, The World Bank.
    7. Mr. Karim A. Nashashibi, 2002. "Fiscal Revenues in South Mediterranean Arab Countries: Vulnerabilities and Growth Potential," IMF Working Papers 2002/067, International Monetary Fund.
    8. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 964-975.
    9. Binder, Monika, 2002. "The Role of Risk and Cost-Benefit Analysis in Determining Quarantine Measures," Staff Research Papers 31911, Productivity Commission.
    10. J. D. Mumford, 2002. "Economic issues related to quarantine in international trade," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 329-348, July.
    11. Cook, D. C. & Fraser, R. W., 2002. "Exploring the regional implications of interstate quarantine policies in Western Australia," Food Policy, Elsevier, vol. 27(2), pages 143-157, April.
    12. Monika Binder, 2002. "The role of risk and cost-benefit analysis in determining quarantine measures," International Trade 0203002, University Library of Munich, Germany.
    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. Tu, Anh Thuy & Beghin, John C., 2005. "Tariff Escalation and Invasive Species Risk," 2005 Annual meeting, July 24-27, Providence, RI 19518, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lofgren, Hans & Robinson, Sherman, 2004. "Public Spending, Growth, and Poverty Alleviation in Sub-Saharan Africa: A Dynamic General Equilibrium Analysis," Conference papers 331292, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Tu, Anh Thuy & Beghin, John C., 2005. "Tariff Escalation and Invasive Species Risk," 2005 Annual meeting, July 24-27, Providence, RI 19518, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Tu, Anh Thuy & Beghin, John & Gozlan, Estelle, 2008. "Tariff escalation and invasive species damages," Ecological Economics, Elsevier, vol. 67(4), pages 619-629, November.
    4. Olson, Lars J., 2006. "The Economics of Terrestrial Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 178-194, April.
    5. Olson, Lars J. & Roy, Santanu, 2010. "Dynamic sanitary and phytosanitary trade policy," Journal of Environmental Economics and Management, Elsevier, vol. 60(1), pages 21-30, July.
    6. David Adamson & David Cook, 2007. "Re-examining economic options for import risk assessments," Murray-Darling Program Working Papers WP3M07, Risk and Sustainable Management Group, University of Queensland.
    7. Levkovych, Inna, 2011. "Der ukrainische Außenhandel mit Produkten der Agrar- und Ernährungswirtschaft: Eine quantitative Analyse aus Sicht traditioneller und neuer Außenhandelstheorien," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 59, number 109520.
    8. Gaigné, Carl & Laroche Dupraz, Cathie & Matthews, Alan, 2015. "Thirty years of European research on international trade in food and agricultural products," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 91-130, March.
    9. Fugazza, Marco & Maur, Jean-Christophe, 2008. "Non-tariff barriers in CGE models: How useful for policy?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 475-490.
    10. Ferrier, Peyton, 2014. "The Effects of Phytosanitary Regulations on U.S. Imports of Fresh Fruits and Vegetables," Economic Research Report 176199, United States Department of Agriculture, Economic Research Service.
    11. Chevassus-Lozza, Emmanuelle & Majkovic, Darja & Persillet, Vanessa & Unguru, Manuela, 2005. "Technical Barriers to Trade in the European Union : Importance for the New EU Members. An Assessment for Agricultural and Food Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24621, European Association of Agricultural Economists.
    12. Abu Hatab, Assem, 2015. "The Impact of Regional Integration on Intra-Arab Trade in Agrifood Commodities: A Panel Data Approach," MPRA Paper 67991, University Library of Munich, Germany, revised 07 Jun 2015.
    13. Inaba, Masaru & Nutahara, Kengo, 2009. "The role of investment wedges in the Carlstrom-Fuerst economy and business cycle accounting," Economics Letters, Elsevier, vol. 105(3), pages 200-203, December.
    14. Beatriz Gaitan & Bernd Lucke, 2007. "The Barcelona initiative and the importance of NTBs: a dynamic CGE-analysis for Syria," International Economics and Economic Policy, Springer, vol. 4(1), pages 33-59, April.
    15. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 4, pages 63-77, World Scientific Publishing Co. Pte. Ltd..
    16. Mkuna, Eliaza, 2014. "East Africa Community (EAC) Non Tariff Barriers and their Effects on Tanzanian Small and Medium Agro Enterprises Cross Border Trade," Research Theses 243444, Collaborative Masters Program in Agricultural and Applied Economics.
    17. 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, Boston, Massachusetts 235847, Agricultural and Applied Economics Association.
    18. Sbarai, Nathalia & Miranda, Silvia Helena Galvao de, 2012. "Estimation of Tariff Equivalent for NTM on Brazilian beef exports to the European Union," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126496, International Association of Agricultural Economists.
    19. Akin-Olagunju, O. & Yusuf, S. & Okoruwa, V., 2018. "Harmonization of Sanitary and Phytosanitary Standards in Cocoa Trade: How Competitive are the Major Exporting Countries?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277463, International Association of Agricultural Economists.
    20. Chengyan Yue & John C. Beghin, 2017. "Tariff Equivalent And Forgone Trade Effects Of Prohibitive Technical Barriers To Trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 8, pages 139-150, World Scientific Publishing Co. Pte. Ltd..

    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:aaea04:20032. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.