Publication Date
12-2006
Series Number
06-WP 439
Abstract
We analyze the linkage between protectionism and invasive species (IS) hazard in the context of two-way trade and multilateral trade integration, two major features of real-world agricultural trade. Multilateral integration includes the joint reduction of tariffs and trade costs among trading partners. Multilateral trade integration is more likely to increase damages from IS than predicted by unilateral trade opening under the classic Heckscher-Ohlin-Samuelson (HOS) framework because domestic production (the base susceptible to damages) is likely to increase with expanding export markets. A country integrating its trade with a partner characterized by relatively higher tariff and trade costs is also more likely to experience increased IS damages via expanded domestic production for the same reason. We illustrate our analytical results with a stylized model of the world wheat market.
Recommended Citation
Tu, Anh T. and Beghin, John C., "Intra-Industry Trade, Multilateral Trade Integration, and Invasive Species Risk" (2006). CARD Working Papers. 441.
https://lib.dr.iastate.edu/card_workingpapers/441
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Environmental Health and Protection Commons, International Economics Commons
