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European Agricultural Biotechnology Preferences and Policy: Growth and Trade Implications

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  • John Francis
  • James F. Oehmke
  • Dave D. Weatherspoon

Abstract

European Union policies effectively prohibit the production and consumption of genetically modified agricultural products. This paper examines the prohibition's effects on research and development, innovation, trade flows, and economic growth using a Heckscher–Ohlin–Samuelson trade model with a neo‐ Schumpeterian approach. Restrictive European Union policies on biotechnology production and consumption result in: an effective export subsidy of capital to the South; changing trade flows; North America being the dominant producer of biotechnology research and development; the South being a dominant producer of biotechnology products; and the European Union being the dominant producer of traditional agricultural products.

Suggested Citation

  • John Francis & James F. Oehmke & Dave D. Weatherspoon, 2005. "European Agricultural Biotechnology Preferences and Policy: Growth and Trade Implications," Review of International Economics, Wiley Blackwell, vol. 13(4), pages 709-724, September.
    • Handle: RePEc:bla:reviec:v:13:y:2005:i:4:p:709-724
    DOI: 10.1111/j.1467-9396.2005.00533.x
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    References listed on IDEAS

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    1. Perdikis, Nicholas, 2000. "A Conflict of Legitimate Concerns or Pandering to Vested Interests? Conflicting Attitudes Towards the Regulation of Trade in Genetically Modified Goods - The EU and the US," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 1(1), pages 1-15.
    2. Giancarlo Gandolfo, 2014. "International Trade Theory and Policy," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-37314-5, April.
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    Cited by:

    1. Klara Fischer & Camilla Eriksson, 2016. "Social Science Studies on European and African Agriculture Compared: Bringing Together Different Strands of Academic Debate on GM Crops," Sustainability, MDPI, vol. 8(9), pages 1-17, August.

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