Impacts of Free Trade Agreement on US State Vegetable and Fruit Trade Flows

A few studies have shown that free trade agreements have affected the pattern of state exports. This paper examines the effects of free trade agreements on US state vegetable and fruit trade flows. We propose a single commodity gravity equation to overcome a common shortcoming of most gravity models...

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Bibliographic Details
Published in:Journal of economic integration 2009, 24(1), , pp.116-134
Main Authors: Karemera, David, Reinstra-Munnicha, Paul, Onyeocha, Joseph
Format: Article
Language:English
Subjects:
Agribusiness
Agricultural economics
Agriculture
Central banks
Commodities
Countries
Farm exports
Free trade
Gravity models
Gross domestic product
International
International trade
Monopolistic competition
North American Free Trade Agreement
Studies
Trade agreements
Trade regionalization
US exports
Vegetables
경제학
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Summary:A few studies have shown that free trade agreements have affected the pattern of state exports. This paper examines the effects of free trade agreements on US state vegetable and fruit trade flows. We propose a single commodity gravity equation to overcome a common shortcoming of most gravity models, which are applied to aggregate trade flows. Our results show significant gross trade creation effects of NAFTA and APEC that are greater than the EU gross trade creation effects. In addition, our findings reveal that the Asian Pacific Rim region is a significant destination of many vegetables and fruits from US states.
ISSN:1225-651X
1976-5525
DOI:10.11130/jei.2009.24.1.116