Least Cost World Trade Patterns for Grains and Meats

John R. Moore, Sammy Elaassar and Billy V. Lessley

Journal of Agricultural and Applied Economics, 1972, vol. 4, issue 1, 129-136

Abstract: There are many barriers to a perfectly free flow of goods among countries. These barriers result in trade diversion and increased transportation costs for the goods involved. This paper reports findings of a study on the ocean transportation cost of trade diversion for grains and meats in 1965-66 where diversion is defined as the difference between the least cost world trade pattern for these commodities as determined by linear programming (transportation model) and the actual trade patterns. The change in United States export patterns and shipping costs that would have resulted from a 10 percent decrease in United States outgoing ocean freight rates for grain and meat in 1965-66 was also calculated. This was done to show the effects of what some feel to be a rate pattern that discriminates against United States exports.

Date: 1972
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