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Technical Barriers to Interstate Trade: Noxious Weed Regulations

Published online by Cambridge University Press:  26 January 2015

Munisamy Gopinath ,
He Min  and
Steven Buccola
Munisamy Gopinath
Affiliation:
Department of Agricultural and Resource Economics, Oregon State University, Corvallis, OR
He Min
Affiliation:
PayPal, Austin, TX, and a former graduate assistant, Oregon State University, Corvallis, OR
Steven Buccola
Affiliation:
Department of Agricultural and Resource Economics, Oregon State University, Corvallis, OR
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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.

Keywords

interstate tradeinvasive speciesrent-seekingF1H7Q5
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 42 , Issue 4 , November 2010 , pp. 617 - 630
Copyright
Copyright © Southern Agricultural Economics Association 2010

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