This .· ~tudy examines the role that factor endowments play in determining us agricultural trade. Finding$ indicate that US agricultural exports are more land-intensive than US agricultural imports. Land-scarce nations tend to import land-intensive commodities from the US while nations with land endowments similar to that of the US import less land-intensive agricultural products .
An input-output model is used to analyze the effects of dollar depreciation on US agricultural prices and income. Findings indicate that, in general, US agricultural producers do not depend heavily upon imported intermediate inputs, and thus cost-push price increase effects should be small. The response of agricultural exports and export related income to a lower dollar depend on price transmission and export elasticities of demand.
The labor, land, and capital intensities of US agricultural trade during 1982 are examined through an input-output model. The empirical findings indicate that factor endowments are important determinants of US agriculture's comparative advantage in international trade. In contrast to the Leontief Paradox, US agricultural exports tend to be more land and capital intensive while agricultural imports are more labor intensive.
Factor intensity of United States agricultural trade is examined in the context of Leontief's classic paradox using Leontief's method as well as methods developed recently by Leamer and others. Findings indicate that factor endowments are important determinants of U.S. agriculture's comparative advantage in trade as suggested by the Heckscher-Ohlin theory.
Factor intensity of United States agricultural trade is examined in the context of Leontief's classic paradox using Leontief's method as well as methods developed recently by Leamer and others. Findings indicate that factor endowments are important determinants of U.S. agriculture's comparative advantage in trade as suggested by the Heckscher-Ohlin theory.