The Incidence of Agricultural Support on Trade of Refined Sugar
International Journal of Business and Economics Research
Volume 2, Issue 3, June 2013, Pages: 77-83
Received: Jun. 28, 2013; Published: Jul. 20, 2013
Views 2652      Downloads 102
Author
Malick Diarrassouba, Legislative Fiscal Office, Room 1007 State Capitol, Lincoln, NE 68509 USA
Article Tools
PDF
Follow on us
Abstract
This paper investigates the impact of the market price support on trade of refined sugar. We use a balanced panel of bilateral trade data are on exports of refined sugar among 22 countries over the period 1995-2007. We employ the theoretical motivated gravity model and spatial econometric techniques to account for spatial interdependence among trade flows. Results suggest that ignoring the spatial dependence in the cross sectional change the magnitude and statistical significance of the estimated parameters. Our results also indicate the benefit of the reduction in the market price support to increase trade of refined sugar.
Keywords
Spatial Econometric, Market Price Support, Spatial Fixed Effects
To cite this article
Malick Diarrassouba, The Incidence of Agricultural Support on Trade of Refined Sugar, International Journal of Business and Economics Research. Vol. 2, No. 3, 2013, pp. 77-83. doi: 10.11648/j.ijber.20130203.15
References
[1]
Anderson James E. 1979. "A Theoretical Foundation for the Gravity Equation." American Economic Review 69(1): 106-116.
[2]
Anderson, J.E., and E. Van Wincoop. 2003. "Gravity with Gravitas: A Solution to the Border Puzzle." American Economic Review 93(1):170–92.
[3]
Anselin Luc. 1988. Spatial Econometrics: Methods and Models. Kluwer, Dordrecht.
[4]
Baier, S. and J. Bergstrand.2007. "Do Free Trade Agreement Actually Increase Memebers’International Trade?" Journal of International Economics 71(1):72-95.
[5]
Bergstrand Jeffrey. 1990. "The Hecksecher-Ohlin- Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-Industry Trade." The Economic Journal 100(403):1216-1229.
[6]
Bernat Andrew. 1996. "Does Manufacturing Matter? A Spatial Econometric View of Kaldor’s Laws." Journal of Regional Science, 36(3): 463-477.
[7]
Borrel Brent and Pearce David. 1999. "Sugar: The Taste Test of Trade Liberalization."Canberra, Sydney: Centre for International Economics.
[8]
Deardorff, A. 1998. " Does Gravity Work in a Neoclassical World?" In J.A. Frankel, ed. The Regionalization of the World Economy. Chicago: University of Chicago Press, 7-32.
[9]
Elhorst Paul and Sandy Freret. 2009. "Evidence of Political Yardstick Competition in France using a Two-Regime Spatial Durbin Model with Fixed Effects." Journal of Regional Science, 49(5): 931-951.
[10]
Elobeid Amani and John Beghin. 2006. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets." Journal of Agricultural Economics 57(1): 23-48.
[11]
Koo W. Won. 2002. "Alternative U.S. and EU Sugar Trade Liberalization Policies and Their Implications." Review of Agricultural Economics 24(2): 336-352.
[12]
Legg Wilfrid. 2003. " Presidential Address Agricultural Subsidies: Measurement and Use in Policy Evaluation." Journal of Agricultural Economics 54(2):175-201.
[13]
LeSage James and Pace Kelly. 2008. "Spatial Econometrics Modeling of Origin-Destination Flows." Journal of Regional Science 48(5):941-967.
[14]
Organization for Economic Cooperation and Development (OECD). 2001. Market Effects of Crop Support Measures: Agriculture and Food. OECD, Paris.
[15]
Oskam J. Arie and Gerrit Meester. 2006. " How useful is the PSE in determining agricultural support." Food Policy 31 :123-141.
[16]
Porojan, A. 2001. "Trade Flows and Spatial Effects: The Gravity Model Revisited."Open Economics Review 12(3):265-280.
[17]
Silva, J.M.C. and S. Tenreyro. 2006. "The Log of the Gravity" The Review of Economics and Statistics, 88(4): 641-658.
[18]
United States Department of Agriculture (USDA). 2010. Sugar: World Production Supply and Distribution. Foreign Agricultural Service/USDA.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186