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

Sampath Jayasinghe · John Christopher Beghin · GianCarlo Moschini

77 citations0/0 files storedAmerican Journal of Agricultural Economics

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Global trade and economics Agricultural economics and policies Economics of Agriculture and Food Markets

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.

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References

2006The Log of Gravity 2008Estimating Trade Flows: Trading Partners and Trading Volumes *2005The Variety and Quality of a Nation's Exports 2004The Puzzling Persistence of the Distance Effect on Bilateral Trade 1998Regional trading blocs in the world economic system 2009On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-inflated Estimation 2008The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements 2006Exploring the Intensive and Extensive Margins of World Trade

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