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Determinants of Comparative Advantage in GMO Intensive Industries

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

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.

Suggested Citation

  • Smith, Pamela J. & Jamiyansuren, Bolormaa & Kitsuki, Akinori & Yang, Jooyoung & Lee, Jaeseok, 2018. "Determinants of Comparative Advantage in GMO Intensive Industries," World Trade Review, Cambridge University Press, vol. 17(3), pages 427-449, July.
    • Handle: RePEc:cup:wotrrv:v:17:y:2018:i:03:p:427-449_00
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    Cited by:

    1. Dan Jiang & Guangling Zhang, 2021. "Marketing Clues on the Label Raise the Purchase Intention of Genetically Modified Food," Sustainability, MDPI, vol. 13(17), pages 1-20, September.
    2. Judit Oláh & József Popp & Szabolcs Duleba & Anna Kiss & Zoltán Lakner, 2021. "Positioning Bio-Based Energy Systems in a Hypercomplex Decision Space—A Case Study," Energies, MDPI, vol. 14(14), pages 1-23, July.

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