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Country Market Power in EU Olive Oil Trade

Author

Listed:
  • Celal Tasdogan

    (Mediterranean Agronomic Institute of Chania)

  • Efthimia Tsakiridou

    (Democritus University of Thrace)

  • Konstantinos Mattas

    (Aristotle University of Thessaloniki)

Abstract

This study investigates market power in olive oil exports in the European Union (EU) market for the major olive oil producers (Italy, Spain and Greece). The study employs the Goldberg and Knetter method to measure the exporter's market power. On the one side the exchange rates of competitor countries were used as an ideal cost shifter, while on the other side the producer price of olive oil was utilized as another cost shifter. Results show that olive oil exports are imperfectly competitive in the EU market, and Italy has higher market power compared to Spain and Greece.

Suggested Citation

  • Celal Tasdogan & Efthimia Tsakiridou & Konstantinos Mattas, 2005. "Country Market Power in EU Olive Oil Trade," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 3(2), pages 211-219.
    • Handle: RePEc:seb:journl:v:3:y:2005:i:2:p:211-219
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    File URL: http://www.asecu.gr/Seeje/issue05/mattas.pdf
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    References listed on IDEAS

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    3. Evans, Edwardv A. & Ballen, Fredy H., 2015. "Competitive Behavior in the U.S. Green Skin Avocado Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-12, November.
    4. Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2017. "Analysis Of Oligopolistic Behaviour Of Kazakh And Russian Exporters In The South Caucasus Wheat Market," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261429, European Association of Agricultural Economists.
    5. A. Malek Hammami & John C. Beghin, 2021. "The trade and welfare impacts of the U.S. retaliatory tariff on EU olive oil," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 807-818, September.
    6. Zsombor Pall & Oleksandr Perekhozhuk & Thomas Glauben & Sören Prehn & Ramona Teuber, 2014. "Residual demand measures of market power of Russian wheat exporters," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 381-391, May.
    7. Alamri, Yosef & Saghaian, Sayed, 2016. "Measuring the Intensity of Competition among Rice Exporters to Saudi Arabia," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252678, Southern Agricultural Economics Association.
    8. Vlontzos, George N. & Duquenne, Marie-Noelle, 2008. "Greek Olive Oil: How Can Its International Market Potential Be Realized?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 9(2), pages 1-16.
    9. Eugenio POMARICI & Riccardo VECCHIO, 2013. "The Italian olive oil industry in the global competitive scenario," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(8), pages 361-372.
    10. Páll, Zsombor, 2015. "Three essays on the Russian wheat export," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 80, number 80.

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    More about this item

    Keywords

    Olive Oil Exports; Market Power; Exporter's Power; Partial Pass Through; Pricing to Market; the Elasticity of Residual Demand;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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