This paper assesses the impact of GATT/WTO membership on agricultural virtual water trade (VWT). Utilizing a newly constructed dataset that integrates international and intra-national VWT flows, we find that GATT/WTO membership enhances VWT, with GATT membership driving a 23.5 percent increase and WTO membership contributing a 59.4 percent increase in bilateral VWT flows.
This study investigates the impact of tariff-induced trade shocks on U.S. farm income, focusing on relative tariff burdens against major competitors. We develop a theoretical framework based on Armington-CES preferences to show how relative tariffs affect export demand and producer revenue. Using a shift-share approach with county-level crop and trade data (2001–2017), we construct a relative tariff shock measure. Empirically, we find that a one-unit increase in relative tariffs vis-à-vis Brazil reduces farm income growth by about 15%, with larger farms exhibiting greater resilience. The results highlight structural vulnerabilities in U.S. agriculture and suggest the need for more targeted trade adjustment support.
This paper examines how the internal geography of U.S. agribusinesses is shaped by managerial distance. While literature shows a performance penalty for plants far from headquarters, agribusinesses face unique spatial constraints tied to natural resources, perishability, and farm-to-market linkages. Using a synthetic counterfactual approach and establishment-level data, we estimate within-firm performance across three dimensions: distance from headquarters, proximity to raw inputs, and access to markets or ports. Ultimately, findings reveal how agribusinesses balance geographic trade-offs, shaping their resilience to trade shocks and supply chain disruptions.