Effects of Trade Policy on Technological Innovation in Agricultural Markets（2017_1_40_017）
With increasing global inter-dependence, a country’s policy could induce technological innovation in its trading partner countries through international trade. The induced technological innovation, which may be biased as a result of the policy orientation, can have complex impact on the trading commodity, especially in a market with highly differentiated products. The project studies the impact of a European policy induced biased technological innovation in the U.S. agricultural industry. Understanding the impact of both trade policy change and technological innovation in developed countries is helpful for developing countries to develop the strategy in international agricultural trade which is important for most developing economies. Specifically, the project will investigate the impact of EU lowering Maximal Residual Level (MRL) on apples on the induced technological innovation in the U.S. apple market.