The effects of trade networks, non-tariff measures and natural disasters on the international beef trade: a gravity approach
This paper aims to investigate the factors influencing the international beef market’s trade flows by applying the gravity model. We focus on the effects of trade networks, non-tariff measures, and natural disasters on the beef trade. This is the first study to incorporate network analysis eigenvector scores into the gravity approach with a view to examining the impact of trade network improvements on trade. Eigenvector centrality scores reveal the prominent role played by the European and Southern Common Market countries and show a well-connected beef network. The results of our gravity model show that beef trade increases more when an importer improves its position in the trade network, shedding light on the importance of strategic network engagement. We also show that Sanitary and Phytosanitary measures are more trade-restrictive than tariffs, a finding which emphasises the need for trade policy to pay attention to such measures. Meteorological (hydrological) catastrophes hurt beef imports (exports); this highlights the importance of implementing safeguarding measures on beef farms.
