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Technical Barriers to Interstate Trade: Noxious Weed Regulations

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  • Gopinath, Munisamy
  • Min, He
  • Buccola, Steven

Abstract

We focus on regulations controlling the spread of noxious weeds, especially the trade effects of regulatory differences across U.S. states. We specify a gravity model for each state's seed, nursery product, and commodity trade with each other state. Within the gravity model, we examine the role of cross-state regulatory congruence arising from ecological and agronomic characteristics and interest-group lobbying. A spatial-autoregressive Tobit model is estimated with a modified expectation-maximization algorithm. Results show that weed regulatory congruence positively affects interstate trade. By fostering cross-state regulatory differences, consumer and commodity-producer lobbying reduce the value of interstate trade by about two percent per annum.

Suggested Citation

  • Gopinath, Munisamy & Min, He & Buccola, Steven, 2010. "Technical Barriers to Interstate Trade: Noxious Weed Regulations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(4), pages 617-630, November.
    • Handle: RePEc:cup:jagaec:v:42:y:2010:i:04:p:617-630_00
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    References listed on IDEAS

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    1. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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