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Estimating the Imperfection in Sawtimber markets: a case study for the South Pacific Region, Colombia

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  • Sandra Rodríuez Piñeros

    ()
    (Oklahoma State University)

  • David K. Lewis

    ()
    (Oklahoma State University)

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    Abstract

    This paper estimates the degree and nature of imperfections in the timber markets for the South Pacific Region of Colombia. These markets are described under the structure/conduct/performance paradigm. An econometric analysis was undertaken to estimate the degree of imperfection. Market structures indicate high levels of seller concentration. These are result of barriers to entry associated with: knowledge and capital requirements; deficiencies in the banking system; vertical integration of participants;available transportation; and other institutional constraints. These imperfections create inequalities in the distribution of income, unemployment and regional poverty. As a consequence the timber industry's contribution to socioeconomic progress is limited and produces a negative impact on the conservation of forestecosystems.

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    File URL: ftp://ftp.drivehq.com/cavasco/lecturas/numero63/n63a7.pdf
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    Bibliographic Info

    Article provided by Universidad de Antioquia, Departamento de Economía in its journal LECTURAS DE ECONOMÍA.

    Volume (Year): (2005)
    Issue (Month): 63 (Julio-Diciembre)
    Pages: 231-260

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    Handle: RePEc:lde:journl:y:2005:i:63:p:231-260

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    Web page: http://economia.udea.edu.co
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    Postal: Lecturas de Economía, Departamento de Economía, Calle 67, 53-108, Medellin 050010, Colombia.

    Related research

    Keywords: Industrial organization; imperfect markets; oligopoly; Lerner index; timber markets;

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    1. Rigoberto Lopez & Azzeddine Azzam & Carmen Lirón-España, 2002. "Market Power and/or Efficiency: A Structural Approach," Review of Industrial Organization, Springer, vol. 20(2), pages 115-126, March.
    2. Carlos Arnade & Daniel Pick, 1999. "Alternative approach to measuring oligopoly power: a wheat market example," Applied Economics Letters, Taylor & Francis Journals, vol. 6(3), pages 195-197.
    3. S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
    4. Azzam, Azzeddine M, 1997. "Measuring Market Power and Cost-Efficiency Effects of Industrial Concentration," Journal of Industrial Economics, Wiley Blackwell, vol. 45(4), pages 377-86, December.
    5. Sanjib Bhuyan & Rigoberto A. Lopez, 1997. "Oligopoly Power in the Food and Tobacco Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1035-1043.
    6. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
    7. Carlos Arnade & Daniel Pick, 2000. "Seasonal oligopoly power: the case of the US fresh fruit market," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 969-977.
    8. Elena Huergo, 2005. "El diagnóstico de poder de mercado en Economía Industrial: Una revisión de la literatura empírica española del siglo XX," Industrial Organization 0504003, EconWPA.
    9. Murray, Brian C, 1995. "Measuring Oligopsony Power with Shadow Prices: U.S. Markets for Pulpwood and Sawlogs," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 486-98, August.
    10. Wunder, Sven, 2001. "Poverty Alleviation and Tropical Forests--What Scope for Synergies?," World Development, Elsevier, vol. 29(11), pages 1817-1833, November.
    11. Shepherd, William G, 1972. "The Elements of Market Structure," The Review of Economics and Statistics, MIT Press, vol. 54(1), pages 25-37, February.
    12. Muth, Mary K. & Wohlgenant, Michael K., 1999. "Measuring The Degree Of Oligopsony Power In The Beef Packing Industry In The Absence Of Marketing Input Quantity Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(02), December.
    13. Schroeter, John R., 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," Staff General Research Papers 11114, Iowa State University, Department of Economics.
    14. Margarida De Mello & Antonio Brandao, 1999. "Measuring the Market Power of the Portuguese Milk Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(2), pages 209-222.
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