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Trade Costs in U.S. Food Manufacturing Industries

Author

Listed:
  • Wu, Qian
  • Gopinath, Munisamy

Abstract

The objective of this study is to measure trade costs incurred by major U.S. regions when trading manufactured food products with other countries. Trade costs in this study’s context refer to all factors limiting exchange of goods and services among countries, e.g. policy, geographic and institutional barriers. Such costs are often measured as frictions in a micro-founded gravity model as in Anderson and van Wincoop (2004) and Jacks et al. (2011). In this study, the gravity framework is extended to identify regional trade costs in the U.S. food manufacturing industry. The new measures of trade costs not only capture the variation over time in trade fictions among countries, but also allow for further examination of their underlying sources: policy, geographic and institutional factors.

Suggested Citation

  • Wu, Qian & Gopinath, Munisamy, 2011. "Trade Costs in U.S. Food Manufacturing Industries," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103526, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103526
    DOI: 10.22004/ag.econ.103526
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    References listed on IDEAS

    as
    1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    2. Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2011. "Trade booms, trade busts, and trade costs," Journal of International Economics, Elsevier, vol. 83(2), pages 185-201, March.
    3. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    4. Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006. "Trade costs, firms and productivity," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 917-937, July.
    Full references (including those not matched with items on IDEAS)

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