Technical Barriers to Interstate Trade: Noxious Weed Regulations

Munisamy Gopinath, He Min and Steven Buccola

Journal of Agricultural and Applied Economics, 2010, vol. 42, issue 4, 617-630

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.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:42:y:2010:i:04:p:617-630_00

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