Determinants of Comparative Advantage in GMO Intensive Industries

PAMELA J. SMITH, BOLORMAA JAMIYANSUREN, AKINORI KITSUKI, JOOYOUNG YANG, JAESEOK LEE

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2 Scopus citations

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 (US)
Pages (from-to)427-449
Number of pages23
JournalWorld Trade Review
Volume17
Issue number3
DOIs
StatePublished - Jul 1 2018

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    SMITH, PAMELA. J., JAMIYANSUREN, BOLORMAA., KITSUKI, AKINORI., YANG, JOOYOUNG., & LEE, JAESEOK. (2018). Determinants of Comparative Advantage in GMO Intensive Industries. World Trade Review, 17(3), 427-449. https://doi.org/10.1017/S1474745617000180