Title

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

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

7-2010

Journal or Book Title

American Journal of Agricultural Economics

Volume

92

Issue

4

First Page or Article ID Number

999

Last Page

1010

DOI

10.1093/ajae/aaq056

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.

JEL Classification

F13, F14, Q17, Q18

Comments

This is a working paper of an article from American Journal of Agricultural Economics 92 (2010): 999, doi: 10.1093/ajae/aaq056.