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 language | English |
|---|---|
| Pages (from-to) | 427-449 |
| Number of pages | 23 |
| Journal | World Trade Review |
| Volume | 17 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Jul 1 2018 |
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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 journal › Review article
}
TY - JOUR
T1 - Determinants of Comparative Advantage in GMO Intensive Industries
AU - Smith, Pamela J.
AU - Jamiyansuren, Bolormaa
AU - Kitsuki, Akinori
AU - Yang, Jooyoung
AU - Lee, Jaeseok
PY - 2018/7/1
Y1 - 2018/7/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85025157362&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85025157362&partnerID=8YFLogxK
U2 - 10.1017/S1474745617000180
DO - 10.1017/S1474745617000180
M3 - Review article
AN - SCOPUS:85025157362
VL - 17
SP - 427
EP - 449
JO - World Trade Review
JF - World Trade Review
SN - 1474-7456
IS - 3
ER -