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Least Cost World Trade Patterns for Grains and Meats

Published online by Cambridge University Press:  28 April 2015

John R. Moore ,
Sammy Elaassar  and
Billy V. Lessley
John R. Moore
Affiliation:
University of Maryland
Sammy Elaassar
Affiliation:
University of Maryland
Billy V. Lessley
Affiliation:
University of Maryland
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Extract

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.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 4 , Issue 1 , July 1972 , pp. 129 - 136
Copyright
Copyright © Southern Agricultural Economics Association 1972

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References

[1]Chartering Annual, New York: Maritime Research, Inc., 1966 and 1967.Google Scholar
[2]Elaassar, Sammy E., “A Study of the Impact of Transportation Costs for United States Trade with the European Economic Community and Other Countries,” unpublished PhD. Thesis, University of Maryland, 1968.Google Scholar
[3]Fairplay Shipping Journal, London, 1965 and 1966 issues.Google Scholar
[4]FAO, Trade Yearbook, 1967, Vol 21, Rome: FAO, 1968.Google Scholar
[5]Hutchinson, T. Q., Heavy Grain Exports in Voyage - Chartered Ships: Rates and Volume, USDA, ERS, Marketing Research Report No. 812, 1968.Google Scholar
[6]U. S. Congress, Joint Economic Committee, Discriminatory Freight Rates and the Balance of Payments, Washington: U. S. Gov. Printing Office, 1965.Google Scholar