Effects of trade barriers on U.S. and world apple markets

Stephen Devadoss, Prasanna Sridharan, Thomas Wahl

Research output: Contribution to journalArticle

7 Scopus citations

Abstract

Regional apple demand and supply parameters using Bayesian estimation were utilized to develop a spatial equilibrium model for the world apple market. A baseline scenario with existing tariffs was developed; a reduced tariff and free trade scenarios were simulated. Comparison of these scenarios with the baseline shows that apple trade is significantly greater under trade liberalization. China increases its exports by 174% under free trade and replaces France as the largest exporter. U.S. exports increased by about 140% to all regions except to Canada and Southeast Asia. Results confirm the importance of transportation costs and the interlinkages of prices in the world market in determining the trade flows.

Original languageEnglish
Pages (from-to)55-73
Number of pages19
JournalCanadian Journal of Agricultural Economics
Volume57
Issue number1
DOIs
StatePublished - Mar 2009

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