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Buyer Concentration in Markets for Developing Country Exports

Author

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  • Alan V. Deardorff
  • Indira Rajaraman

Abstract

The authors explore the implications of buyer concentration in markets for primary commodity exports of developing countries. Simple partial equilibrium models of monopsony and oligopsony show that the best available policy for the exporting country may be to tax exports so as to extract some of the profits of the monopsonist, even though doing so will actually worsen the distortion caused by the buyer's market power. They also explore the general equilibrium implications of these results for factor markets and for patterns of trade. Copyright © 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd.

Suggested Citation

  • Alan V. Deardorff & Indira Rajaraman, 2009. "Buyer Concentration in Markets for Developing Country Exports," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 190-199, May.
  • Handle: RePEc:bla:rdevec:v:13:y:2009:i:2:p:190-199
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    References listed on IDEAS

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    Cited by:

    1. Pio Baake & Steffen Huck, 2013. "Crop Failures and Export Tariffs," Discussion Papers of DIW Berlin 1342, DIW Berlin, German Institute for Economic Research.
    2. ISHIKAWA, Jota & TARUI, Nori, 2015. "Backfiring with backhaul problems: Trade and Industrial Policies with Endogenous Transport Costs," Discussion paper series HIAS-E-12, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    3. Reza Oladi & John Gilbert, 2012. "Buyer and Seller Concentration in Global Commodity Markets," Review of Development Economics, Wiley Blackwell, vol. 16(2), pages 359-367, May.
    4. Pothen, Frank & Fink, Kilian, 2015. "A political economy of China's export restrictions on rare earth elements," ZEW Discussion Papers 15-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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