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Increased Cocoa Bean Exports under Trade Liberalization: A Gravity Model Approach

  • Yeboah, Osei-Agyeman
  • Shaik, Saleem
  • Wozniak, Shawn J.
  • Allen, Albert J.
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    Gravity models were developed to estimate the potential bilateral exports of cocoa under trade liberalization by the sixteen major cocoa producing countries to the US using panel data from 1989 to 2003. The results indicate that differences between resource endowment, relative size of economies, and the sum of bilateral GDP of U.S. and exporting countries are the major determinants. Thus, as trade is liberalized, farmers share of the world price of cocoa increases and this raises exports.

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    File URL: http://purl.umn.edu/6819
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    Paper provided by Southern Agricultural Economics Association in its series 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas with number 6819.

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    Date of creation: 2008
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    Handle: RePEc:ags:saeaed:6819
    Contact details of provider: Web page: http://www.saea.org/

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    9. Koo, Won W. & Karemera, David & Taylor, Richard, 1994. "A gravity model analysis of meat trade policies," Agricultural Economics, Blackwell, vol. 10(1), pages 81-88, January.
    10. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
    11. Gros, Daniel & Gonciarz, Andrzej, 1996. "A note on the trade potential of Central and Eastern Europe," European Journal of Political Economy, Elsevier, vol. 12(4), pages 709-721, December.
    12. Christopher L. Gilbert & Panos Varangis, 2003. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Working Papers 9668, National Bureau of Economic Research, Inc.
    13. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
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