Long‐run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event

Date
2020-11-01
Authors
Chen, Chen-Ti
Crespi, John
Hahn, William
Schulz, Lee
Taha, Fawzi
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Economics
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Abstract

This paper examines how comparative advantages of major beef exporters changed following the 2003 bovine spongiform encephalopathy (BSE) outbreak, which significantly disrupted the U.S. beef trade until approximately 2007. Using longitudinal data on beef export values and constructed revealed comparative advantage measures, we show that while some measures of the long‐run impacts of BSE on U.S. beef export competitiveness have returned to pre‐2003 levels, the U.S.’s comparative advantage has not. We also examine a hypothetical scenario of no BSE event in 2003 and predict that in the absence of the BSE outbreak, the U.S. beef sector would have been increasingly more competitive by 2017 than it actually was. Long‐term trade competitiveness may not simply return to normal even after a short‐term disruption.

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This article is published as Chen, Chen‐Ti, John M. Crespi, William Hahn, Lee L. Schulz, and Fawzi Taha. "Long‐run impacts of trade shocks and export competitiveness: Evidence from the US BSE event." Agricultural Economics 51, no. 6 (2020): 941-958. doi: 10.1111/agec.12602.

Keywords
beef exports, BSE, comparative advantage, competition, international trade, trade disruption
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