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

Thumbnail Image
Date
2009-01-01
Authors
Beghin, John
Moschini, GianCarlo
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Person
Beghin, John
Retired Faculty
Person
Moschini, Giancarlo
Distinguished Professor
Research Projects
Organizational Units
Journal Issue
Is Version Of
Versions
Series
Department
Center for Agricultural and Rural Development
Abstract

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.

Comments
Description
Keywords
Citation
DOI
Source
Copyright
Collections