Determinants of Comparative Advantage in GMO Intensive Industries

Pamela J. Smith, Bolormaa Jamiyansuren, Akinori Kitsuki, Jooyoung Yang, Jaeseok Lee

Research output: Contribution to journalReview article

Abstract

This paper examines the supply-side determinants of international trade in crops that are intensive in genetically modified organisms (GMOs). The theoretical framework is a variant of the Heckscher-Ohlin model, which we estimate using cross-country data for 1995 and 2010 to examine soybeans, maize, and cotton trade. The data include measures of country land endowments, which we disaggregate into GMO and non-GMO components, as well as recently released measures of GMO regulations. Findings show land endowments are a primary source of comparative advantage in GMO intensive industries before and after the advent of GMOs. Further, an increase in a country's allocation of land to GMO crops has a positive effect on her net exports in GMO intensive industries. This positive effect occurs both across countries and time. Finally, a country's GMO regulations have a negligible effect as a supply-side determinant of comparative advantage. However, a country's decision about whether to adopt GMO technologies does matter to trade. These findings are robust with respect to a variety of considerations.

Original languageEnglish
Pages (from-to)427-449
Number of pages23
JournalWorld Trade Review
Volume17
Issue number3
DOIs
Publication statusPublished - Jul 1 2018

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determinants
industry
supply
regulation
world trade
agricultural product
Industry
Comparative advantage
Genetically modified organisms
time

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Political Science and International Relations
  • Law

Cite this

Determinants of Comparative Advantage in GMO Intensive Industries. / Smith, Pamela J.; Jamiyansuren, Bolormaa; Kitsuki, Akinori; Yang, Jooyoung; Lee, Jaeseok.

In: World Trade Review, Vol. 17, No. 3, 01.07.2018, p. 427-449.

Research output: Contribution to journalReview article

Smith, Pamela J. ; Jamiyansuren, Bolormaa ; Kitsuki, Akinori ; Yang, Jooyoung ; Lee, Jaeseok. / Determinants of Comparative Advantage in GMO Intensive Industries. In: World Trade Review. 2018 ; Vol. 17, No. 3. pp. 427-449.
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