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The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture

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  • Miljkovic, Dragan
  • Shaik, Saleem

Abstract

This study addresses the impact of trade openness on technical efficiency in the U.S. agricultural sector. The results indicate that trade protectionism illustrated with a decrease in the share of agricultural imports in agricultural GDP led to an increase in technical efficiency. A change in the share of agricultural exports in agricultural GDP had no impact on technical efficiency. These results are partially consistent with the premise of the new trade theory, but also seem to be driven by the intricacies of the agricultural sector and agricultural policy in the United States and internationally.

Suggested Citation

  • Miljkovic, Dragan & Shaik, Saleem, 2010. "The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture," Agribusiness & Applied Economics Report 95749, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaae:95749
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    File URL: http://purl.umn.edu/95749
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    References listed on IDEAS

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    1. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 613-646.
    2. Hung-jen Wang & Peter Schmidt, 2002. "One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels," Journal of Productivity Analysis, Springer, vol. 18(2), pages 129-144, September.
    3. Krishna G. Iyer & Alicia N. Rambaldi & Kam Ki Tang, 2008. "Efficiency externalities of trade and alternative forms of foreign investment in OECD countries," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 749-766.
    4. Miljkovic, Dragan & Jin, Hyun J. & Paul, Rodney, 2008. "The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 873-885.
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    Cited by:

    1. Enerelt Murakami, 2013. "Efficiency and productivity of the Mongolian livestock sector in an open economy," Economics Bulletin, AccessEcon, vol. 33(4), pages 2617-2626.
    2. Shchetynin, Yevhenii, 2015. "Effects of imports on technical efficiency in Russian food industry," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 37(1), pages 27-42.
    3. Hart, Jarret, 2013. "Impact of Trade Openness on Technical Efficiency: Agricultural Sector of the European Union," Proceedings Issues, 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182500, International Agricultural Trade Research Consortium.
    4. Justice Gameli Djokoto, 2013. "Trade Openness and Technical Efficiency Change in Ghana’s Agriculture," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(1), pages 1-10.

    More about this item

    Keywords

    Agricultural Finance; International Relations/Trade;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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