IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

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

  • Jayasinghe, Sampath J.D.Y.
  • Beghin, John C.
  • Moschini, GianCarlo

The United States is a large net exporter of corn seeds. Seed trade, including that of corn, has been expanding, but its determinants are not well understood. This paper econometrically investigates the determinants of world demand for U.S. corn seeds with a detailed analysis of trade costs impeding export flows to various markets, including costs associated with distance, tariffs, and sanitary and phytosanitary (SPS) regulations. The analysis relies on a gravity-like model based on an explicit specification of derived demand for seed by foreign corn producers, estimated based on data from 48 countries and for the years 1989 to 2004. An SPS count variable is incorporated as a shifter in the unit cost of seeds faced by foreign users. A sample selection framework is used to account for the determination of which trade flows are positive. All trade costs matter and have had a negative impact on U.S. corn seed exports. Tariffs matter most, followed by distance and SPS measures. �

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/p11493-2010-05-14.pdf
Download Restriction: no

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 31493.

as
in new window

Length:
Date of creation: 14 May 2010
Date of revision:
Publication status: Forthcoming in American Journal of Agricultural Economics
Handle: RePEc:isu:genres:31493
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. David Hummels & Peter J. Klenow, 2002. "The Variety and Quality of a Nation's Trade," NBER Working Papers 8712, National Bureau of Economic Research, Inc.
  2. Fernandez-Cornejo, Jorge & Caswell, Margriet, 2006. "The First Decade of Genetically Engineered Crops in the USA," Economic Information Bulletin 33897, United States Department of Agriculture, Economic Research Service.
  3. Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics 3744, London School of Economics and Political Science, LSE Library.
  4. Rohrbach, D. D. & Minde, I. J. & Howard, J., 2003. "Looking beyond national boundaries: regional harmonization of seed policies, laws and regulations," Food Policy, Elsevier, vol. 28(4), pages 317-333, August.
  5. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
  6. Will Martin & Cong S. Pham, 2008. "Estimating the Gravity Model When Zero Trade Flows are Frequent," Economics Series 2008_03, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  7. Burger, M.J. & van Oort, F.G. & Linders, G.J.M., 2009. "On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-Inflated Estimation," ERIM Report Series Research in Management ERS-2009-003-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  8. Gabriel J. Felbermayr & Wilhelm Kohler, 2006. "Exploring the Intensive and Extensive Margins of World Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 642-674, December.
  9. Yue, Chengyan & Beghin, John C., 2007. "The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," Staff General Research Papers 12852, Iowa State University, Department of Economics.
  10. Beghin, John C. & Bureau, Jean-Christophe, 2005. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Staff General Research Papers 12740, Iowa State University, Department of Economics.
  11. Linda Calvin & Barry Krissoff & William Foster, 2008. "Measuring the Costs and Trade Effects of Phytosanitary Protocols: A U.S.–Japanese Apple Example," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 120-135.
  12. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements.
  13. Rodolfo Hoffmann & Ana Lucia Kassouf, 2005. "Deriving conditional and unconditional marginal effects in log earnings equations estimated by Heckman's procedure," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1303-1311.
  14. Everett B. Peterson & David Orden, 2008. "Avocado Pests and Avocado Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 321-335.
  15. Chengyan Yue & John C. Beghin, 2009. "Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 930-941.
  16. Fernandez-Cornejo, Jorge, 2004. "The Seed Industry In U.S. Agriculture: An Exploration Of Data And Information On Crop Seed Markets, Regulation, Industry Structure, And Research And Development," Agricultural Information Bulletins 33671, United States Department of Agriculture, Economic Research Service.
  17. Chengyan Yue & John C. Beghin & Helen H. Jensen, 2005. "Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," Food and Agricultural Policy Research Institute (FAPRI) Publications 05-wp383, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  18. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2008. "The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 336-350.
  19. John C. Beghin, 2006. "Nontariff Barriers," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp438, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  20. repec:lmu:muenar:20646 is not listed on IDEAS
  21. Ghazalian, Pascal & Tamini, Lota & Larue, Bruno & Gervais, Jean-Philippe, 2007. "A Gravity approach to evaluate the significance of trade liberalization in vertically-related goods in the presence of non-tariff barriers," MPRA Paper 2744, University Library of Munich, Germany.
  22. Anne-Célia Disdier & Keith Head, 2008. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 37-48, February.
  23. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  24. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:isu:genres:31493. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Curtis Balmer)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.