A model of optimal import phytosanitary inspection under capacity constraint

A model of optimal import phytosanitary inspection under capacity constraint

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Article ID: iaor20091089
Country: United Kingdom
Volume: 38
Issue: 3
Start Page Number: 363
End Page Number: 373
Publication Date: May 2008
Journal: Agricultural Economics
Authors: , , ,
Keywords: allocation: resources
Abstract:

Growth and liberalization of world trade have increased the risks of introduction of quarantine plant pests into importing countries. Import inspection of incoming commodities is a major tool for prevention of pest introductions related to world trade, but inspection capacities are limited. This article develops a theoretical and an empirical model for the optimal allocation of inspection effort for phytosanitary inspection of imported commodities when the inspecting agency has a limited capacity. It is shown that the optimal allocation of inspection effort equalizes marginal costs of pest introduction across risky commodity pathways.

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