European Agricultural Biotechnology Preferences and Policy: Growth and Trade Implications |
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| Authors: | John Francis James F Oehmke Dave D Weatherspoon |
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| Institution: | Department of Economics, Auburn University—Montgomery, Montgomery, AL, USA. E-mail: .; Dept. of Agricultural Economics, 317 AgH, Michigan State University, East Lansing, MI, USA. E-mail: .; Dept. of Agricultural Economics, 213 AgH, Michigan State University, East Lansing, MI, USA. E-mail: . |
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| Abstract: | European Union policies effectively prohibit the production and consumption of genetically modified agricultural products. This paper examines the prohibition's effects on research and development, innovation, trade flows, and economic growth using a Heckscher–Ohlin–Samuelson trade model with a neo‐ Schumpeterian approach. Restrictive European Union policies on biotechnology production and consumption result in: an effective export subsidy of capital to the South; changing trade flows; North America being the dominant producer of biotechnology research and development; the South being a dominant producer of biotechnology products; and the European Union being the dominant producer of traditional agricultural products. |
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