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Strategic Trade Analysis Of U.S. And Chinese Apple Juice Market

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  • LUCKSTEAD, JEFF
  • DEVADOSS, STEPHEN
  • DHAMODHARAN, MAHALINGAM

Abstract

Because of high competition from Chinese apple juice processors, the United States imposed an antidumping duty on apple juice imports from China to protect the domestic processors. This trade policy benefited U.S. processors but negatively impacted Chinese processors as well as consumers in the United States. Because of the economic reforms, foreign direct investment, and technological spillover, Chinese apple processors have increased their productivity. Under oligopolistic competition with endogenous firm entry and exit, this article analyzes how the changes in U.S. tariff policy and Chinese productivity impact the market structure in the United States and China, as well as prices, quantities, and U.S. and Chinese welfare. Trade liberalization and an increase in Chinese productivity help U.S. consumers and Chinese processors. However, U.S. tariff removal adversely affects U.S. apple juice processors.

Suggested Citation

  • Luckstead, Jeff & Devadoss, Stephen & Dhamodharan, Mahalingam, 2015. "Strategic Trade Analysis Of U.S. And Chinese Apple Juice Market," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(2), pages 175-191, May.
    • Handle: RePEc:cup:jagaec:v:47:y:2015:i:02:p:175-191_00
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    Cited by:

    1. Sabala, Ethan & Devadoss, Stephen, 2021. "Analysis of Chinese Tariff on Sorghum Market under Varying Market Structures," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(1), January.
    2. Zainuddin Zainuddin & Bonar M. Sinaga & Sri Hartoyo & Erwidodo Erwidodo, 2019. "Assessing Market Power, Impact of Import Tariff Reductions and Weakening Demand for Rubber Products (HS code 4011) in the Australian Market," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 59-72.

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