Market Power of The Japanese Non-GM Soybean Import Market: The U.S. Exporters vs. Japanese Importers
AbstractGenetically modified (GM) soybean acreage has rapidly increased in the world in the past decade and globally the majority of countries now use GM soybeans to produce oil and meal for livestock and human consumption. Japan,however, uses only Non-GM soybeans as widely recognized high quality goods in vertically differentiated import soybeans in Japan, for direct human consumption of which more than 80% are imported from the U.S., Canada,and China. This research used the inverse residual demand model to estimate a U.S.-Japan partial equilibrium trade model to test the existence of market power in the Japanese Non-GM soybean import market. The U.S.-Japan partial equilibrium trade model incorporated the U.S. residual Non-GM soybean supply for Japan, the Japanese residual demand for U.S. Non-GM soybeans,and the equilibrium condition, where the U.S. residual Non-GM soybean supply equals the Japanese residual Non-GM soybean demand. Monthly data from January 2003 to December 2007 were used for the analysis. Empirical results indicated that U.S. Non-GM soybean exporters have stronger market power than Japanese Non-GM soybean importers. The results are different from other countries empirical studies and indicate that Japanese consumers are willing to pay higher prices for soybeans, tofu, natto, miso, and other all-soy food products using Non-GM soybeans.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Asian Economic and Social Society in its journal Asian Journal of Agriculture and rural Development.
Volume (Year): 1 (2011)
Issue (Month): 2 (December)
Contact details of provider:
Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan
Web page: http://www.aessweb.com/
Market power; Non-GMO; Industrial Organization; Soybeans;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pinelopi K. Goldberg & Michael M. Knetter, 1995.
"Measuring the Intensity of Competition in Export Markets,"
NBER Working Papers
5226, National Bureau of Economic Research, Inc.
- Goldberg, Pinelopi Koujianou & Knetter, Michael M., 1999. "Measuring the intensity of competition in export markets," Journal of International Economics, Elsevier, vol. 47(1), pages 27-60, February.
- Carter, Colin A. & MacLaren, Donald & Yilmaz, Alper, 1999. "How Competitive Is The World Wheat Market?," Working Papers 11973, University of California, Davis, Department of Agricultural and Resource Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qazi Muhammad Imran).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.