The Former Soviet Union and the World Wheat Economy

Review Development Economics

Ridley

2014

Self Cite

In response to the USA blocking Mexican trucks from traveling to the inland part of the USA, Mexico imposed tariffs on US fresh apple exports. This study analyzes the impacts of the Mexican tariff on USA, Mexican and world apple markets by using theoretical analysis and developing a spatial equilibrium trade model. The results show that this tariff increases apple prices in Mexico, to the benefit of Mexican producers but harming Mexican consumers. Even though Mexico collects revenues from its tariff, the overall welfare impact is negative because consumers' loss outweighs producers' gain and tariff revenues. Since the USA exports less to Mexico, its prices and production decline, but consumption increases. To mitigate the export market loss to Mexico, the USA redirects its exports to other importing countries, displacing other apple exporting countries' trade with these importing countries.

Section: Empirical Modelmentioning

confidence: 99%

Section: Empirical Modelmentioning

confidence: 99%

Effects of the Mexican Apple Tariff on the World Apple Market

Review Development Economics

Ridley

2014

Self Cite

“…For example, Boyd and Krutilla (1987) utilised the SEM to examine the US tariff on lumber imports from Canada and found that the US tariff harms Canadian lumber producers, but voluntary export restraint by Canada benefits Canadian lumber producers. Jones et al (1996) employed the SEM to study the effects of the former Soviet Union on the world wheat market and concluded that the stability of the wheat market is impacted by unpredictable wheat production in the former Soviet Union. Devadoss et al (2009) developed a SEM for the world apple market to study the impacts of free trade.…”

Section: Introductionmentioning

confidence: 99%

Spatial equilibrium analysis of Chinese tariff on world cotton markets

Sabala

2020

World Economy

Self Cite

We develop a theoretical and an empirical spatial equilibrium model (SEM) to analyse the effects of the 25% Chinese cotton tariff on United States, Chinese and world markets. The tariff causes US cotton price, production and exports to decrease, while simultaneously increasing China's price and production. The SEM determines the trade reallocations caused by the Chinese tariff. The United States diverts some of its exports to other importing countries, which allows the United States to mitigate some of its losses. Other cotton exporters increase their exports to China at the expense of the United States.

“…The SEM model has been extensively used for trade policy analyses: the impacts of Mexican tariff on US apple exports, the influence of former Soviet Union on world wheat market(Jones et al, 1996), a free trade analysis in the wheat market(Gómez-Plana & Devadoss, 2004), the consequences of United States-Canadian lumber dispute(Devadoss, 2006), and the effects of United States-Brazil cotton dispute on the world market. The advantage of SEM is that it analyzes in great detail the effects of policy changes on trade flow reallocations, prices, supply, demand and welfare of each country in the partial equilibrium or cross commodity framework.…”

mentioning

confidence: 99%

Consequences of Chinese tariff and US MFP payments on world soybean‐complex markets

Baryshpolets

J of Agr & App Econ Assoc

Sabala³

2022

Self Cite

This study develops a theoretical and empirical spatial equilibrium model to determine the effects of removing the Chinese soybean tariff and US MFP payments on world soybean‐complex markets. The model includes vertical and horizontal linkages of the soybean, soy oil, and soy meal markets, thus capturing the downstream effects of tariff and MFP payment removal. The study finds that removing these policies generates overall gains for the United States and the world, but China incurs welfare losses due primarily to reduced tariff revenues. These impacts of tariff and MFP payment elimination reverberate to all countries participating in soybean, soy oil, or soy meal trade.