A Gravity Model of Central American Organic Coffee Trade with the United States

This research analyzes the effects of economic and regulatory factors on the trade volume of organic Arabica green coffee from Central America to the United States. A gravity model with a panel data set is estimated using data from 2011 to 2020. We found that the major factors affecting the organic coffee trade were the organic price paid to exporters, U.S. per capita GDP, and the number of organic certified USDA-NOP organizations in the exporting countries. Central America can continue diversifying its production by adopting more organic certification schemes and expanding its market share in international markets.