A Rationale for the Differential Regulatory Treatment of Imports When Invasive Species are a Potential Problem

19 Pages Posted: 2 Jul 2006

See all articles by Amitrajeet A. Batabyal

Amitrajeet A. Batabyal

Rochester Institute of Technology (RIT) - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 2006

Abstract

The maritime trade related risks from invasive species in a nation depend, inter alia, on the countries from which goods are being imported. In the United States, the USDA's APHIS routinely uses inspections to screen arriving ships at seaports for invasive species. Given this state of affairs, we first use queuing theory to construct a simple model of maritime trade and seaport inspections with one importing nation (Home) and two exporting nations. We then derive a ratio criterion that specifies a condition under which it makes sense for a seaport manager in Home to grant favorable regulatory treatment to the imports from one or the other exporting country. This country of origin rule depends on the mean time it takes to inspect ships from the two exporting countries and on the dollar value of the imports from these two countries.

Keywords: Inspection, Invasive Species, Maritime Trade, Regulation, Uncertainty

JEL Classification: F18, Q56, Q58

Suggested Citation

Batabyal, Amitrajeet A., A Rationale for the Differential Regulatory Treatment of Imports When Invasive Species are a Potential Problem (June 2006). Available at SSRN: https://ssrn.com/abstract=912501 or http://dx.doi.org/10.2139/ssrn.912501

Amitrajeet A. Batabyal (Contact Author)

Rochester Institute of Technology (RIT) - Department of Economics ( email )

92 Lomb Memorial Drive
Rochester, NY 14623-5604
United States
585-475-2805 (Phone)
585-475-5777 (Fax)

HOME PAGE: http://people.rit.edu/aabgsh

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
51
Abstract Views
810
rank
464,336
PlumX Metrics