Reciprocal Trade Agreements: Impacts on Bilateral Trade Expansion and Contraction in the World Agricultural Marketplace

The rapid increase in the number of bilateral and regional free-trade agreements since 1995 is a striking development. The proliferation of these agreements has raised questions about whether they have, in fact, opened markets, created trade, promoted economic growth, and/or distorted trade. This study uses panel data from 1975 to 2005 and a gravity framework model to identify the influence of reciprocal trade agreements (RTAs) on bilateral trade in the world agricultural marketplace. A benchmark, Heckman sample-selection and two generalized models, one of which accounts for RTA phase-in effects, are used to gauge the impact on partner trade of mutual as well as asymmetric RTA membership. Empirical results show that RTAs increase agricultural trade between member countries but decrease trade between member and nonmember countries. Interestingly, RTAs were found to be particularly effective at expanding agricultural trade and opening markets in developing countries when developing- country trading partners are part of the same agreement.trade policy, reciprocal trade agreements, bilateral, regional, missing trade, gravity models, Agricultural and Food Policy, International Development, International Relations/Trade,

Economic costs and payoffs of bilateral/regional trade agreements

The rapid increase in the number of bilateral and regional free-trade agreements since 1995 is a striking development. The proliferation of these agreements has raised questions among academicians and policymakers about whether they have, in fact, opened markets, created trade, promoted economic growth, and/or distorted trade. This study uses panel data from the 1975-2005 period and the gravity framework to identify the influence of bilateral/regional free-trade agreements on bilateral trade in merchandise, agriculture, and clothing sectors. A benchmark, Heckman sample-selection, and two generalized models, one of which accounts for reciprocal-free-trade-agreement phase-in effects, are used to gauge the impact on partner trade of mutual as well as asymmetric RTA membership.trade policy, bilateral, regional, missing trade, gravity models, reciprocal trade agreements, Agricultural and Food Policy,

Bilateral Protection and Other Determinants of Trade: A Gravity Model Approach

Replaced with revised version of paper 10/03/07.International Relations/Trade,

THE GENERALIZED COMPOSITE COMMODITY THEOREM AND FOOD DEMAND ESTIMATION

This paper reports tests of aggregation over consumer food products and estimates of aggregate food demand elasticities. Evidence that food demand variables follow unit root processes leads us to build on and simplify tests of the Generalized Composite Commodity Theorem found in the literature. We compute food demand elasticities using cointegration applied to a convenient but nonlinear functional form. Estimates are based on consumer reported expenditure data rather than commercial disappearance data.Demand and Price Analysis,

BIASED BIASED TECHNOLOGICAL PROGRESS IN THE U.S. FARM SECTOR: A STRUCTURAL PERSPECTIVE

Research and Development/Tech Change/Emerging Technologies,

A DECOMPOSED REGRESSION MODEL FOR MEASURING STRUCTURAL CHANGES IN THE FLOUR MILLING INDUSTRY

This paper presents a decomposed Poisson regression model based on count data that evaluates the size distribution, the changing number of flour mills for each size class, and the concentration of market power, simultaneously. This model also allows us to test dominant price leadership model.Agribusiness, Industrial Organization,

Intensive versus Extensive Dairy Production Systems: Dairy States in the Eastern and Midwestern U.S. and Key Pasture Countries the E.U.: Determining the Competitive Edge

In recent years, significant structural and production system changes have been noted in the U.S. and European Union, as well as increased interest in pasture-based dairy systems. Technical efficiency, returns to scale, and farm characteristics are compared by size and production system in traditional U.S. dairy states and E.U. countries.U.S., EU Countries, Dairy Systems, Technical Efficiency, Returns To Scale, Size, Technology, Land Prices, Production Economics, Q12,

Economic Efficiency of U.S. Organic Versus Conventional Dairy Farms: Evidence from 2005 and 2010

We estimate an input distance function for U.S. dairy farming to examine the competitiveness of organic and non-organic dairy production by system and size. Across organic/non-organic systems and size classes, size is the major determinant of competitiveness based on various measures of productivity and returns to scale.Organic, Non-organic, Input Distance Function, Livestock Production/Industries, Production Economics,

Forage Outsourcing in the Dairy Sector: The Extent of Use and Impact on Farm Profitability

The extent of forage purchasing behavior in milk production and its impact on profitability are analyzed using data from the 2000 and 2005 dairy versions of the Agricultural Resource Management Survey. Forage outsourcing is more common with hay than with silage and haylage, and is more prevalent in the western United States. Though silage and haylage outsourcing is found to impact profitability, the major profitability drivers appear to be farm size and efficiency. Evidence of significant forage contracting is found in the western United States.forage, input purchasing, outsourcing, contracting, milk production, Farm Management, Industrial Organization, Livestock Production/Industries,

Agricultural Profits and Farm Household Wealth: A Farm-level Analysis Using Repeated Cross Sections

This study examines the relationship between agricultural profits and farm household wealth across locations and farm sizes in U.S. agriculture. A multiperiod household model is used to develop hypotheses for testing. Results indicate that farmland has out-performed nonfarm investments over the past decade. Thus, households may want to keep their farmland to build wealth, even if it requires them to earn off-farm income. The analysis implies that decision will be made based on farm household wealth factors having little to do with agriculture.farm household, off-farm income, production profits, wealth, Agribusiness, Demand and Price Analysis, Farm Management, Risk and Uncertainty, Q12, Q14,