IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v12y2014i1p12n9.html
   My bibliography  Save this article

Thailand’s Market Power in Its Rice Export Markets

Author

Listed:
  • Mahanaseth Itthipong

    (Department of Agricultural and Resource Economics, Faculty of Economics, Kasetsart University, Bangkok 10900, Thailand)

  • Tauer Loren W.

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY 14850, USA)

Abstract

We measure the degree of market power Thailand has in its major rice export markets. Elasticities of residual demands for Thai rice for its important export destinations of China, Indonesia, USA, and South Africa were estimated and used as indicators of the degree of competition or market power in each respective market. Thai rice exports were classified into four categories consisting of aggregated white rice, Hommali rice, glutinous rice, and parboiled rice. For aggregated rice exports, the results reveal that Thailand does not have market power to influence export prices in its four major export markets. Instead, Thailand faces fierce competition from the rice-exporting countries of Vietnam and India, whose rice appears to be very close substitutes to Thai rice. Likewise, in the case of the disaggregated Hommali rice export market, Thailand does not possess market power. However, results indicate that Thailand has some market power in the glutinous rice export markets to China and Indonesia. Lastly, Thailand appears to have significant market power over parboiled rice export to South Africa. These results are useful in ongoing discussions of Thailand rice policies.

Suggested Citation

  • Mahanaseth Itthipong & Tauer Loren W., 2014. "Thailand’s Market Power in Its Rice Export Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 12(1), pages 109-120, January.
    • Handle: RePEc:bpj:bjafio:v:12:y:2014:i:1:p:12:n:9
    DOI: 10.1515/jafio-2014-0003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jafio-2014-0003
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/jafio-2014-0003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ngokkuen, Chuthaporn & Grote, Ulrike, 2012. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-29, May.
    2. 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.
    3. Yumkella, K. K. & Unnevehr, L. J. & Garcia, P., 1994. "Noncompetitive Pricing and Exchange Rate Pass-Through in Selected U.S. and Thai Rice Markets," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 406-416, December.
    4. Baker, Jonathan B. & Bresnahan, Timothy F., 1988. "Estimating the residual demand curve facing a single firm," International Journal of Industrial Organization, Elsevier, vol. 6(3), pages 283-300.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Bo & Saghaian, Sayed, 2016. "Market Integration and Price Transmission in theWorld Rice Export Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-14.
    2. Uhl, Kerstin Marit & Perekhozhuk, Oleksandr & Glauben, Thomas, 2019. "Russian market power in international wheat exports: Evidence from a residual demand elasticity analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 17(2), pages 1-13.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    5. Sunil P. Dhoubhadel & Azzeddine M. Azzam & Matthew C. Stockton, 2017. "Does the USA have market power in importing ethanol from Brazil?," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 10(2/3), pages 251-266.
    6. Alessandro Bonanno & Rigoberto A. Lopez, 2008. "Wal-Mart’s Monopsony Power in Local Labor Markets," Food Marketing Policy Center Research Reports 103, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    7. Gual, Jordi, 2003. "Market Definition in the Telecoms Industry," CEPR Discussion Papers 3988, C.E.P.R. Discussion Papers.
    8. Stenborg, Markku, 2002. "Economics of Joint Dominance," Discussion Papers 834, The Research Institute of the Finnish Economy.
    9. Austan Goolsbee & Chad Syverson, 2023. "Monopsony Power in Higher Education: A Tale of Two Tracks," Journal of Labor Economics, University of Chicago Press, vol. 41(S1), pages 257-290.
    10. Swift, Robyn, 2004. "The pass-through of exchange rate changes to the prices of Australian exports of dairy and livestock products," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(01), pages 1-27.
    11. Katsoulacos Yannis & Konstantakopoulou Ioanna & Metsiou Eleni & Tsionas Efthymios, 2014. "Quantitative Price Tests in Antitrust Market Definition with an Application to the Savory Snacks Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 12(1), pages 1-33, January.
    12. Uhl Kerstin Marit & Perekhozhuk Oleksandr & Glauben Thomas, 2019. "Russian Market Power in International Wheat Exports: Evidence from a Residual Demand Elasticity Analysis," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(2), pages 1-13, November.
    13. Garcia, Angel & Jaumandreu, Jordi & Rodriguez, Cesar, 2004. "Innovation and jobs: evidence from manufacturing firms," MPRA Paper 1204, University Library of Munich, Germany.
    14. Hirsch, Barry T. & Schumacher, Edward J., 1995. "Monopsony power and relative wages in the labor market for nurses," Journal of Health Economics, Elsevier, vol. 14(4), pages 443-476, October.
    15. Andrea Cristina Dorr & Jaqueline Carla Guse & Marivane Vestena Rossato, 2014. "Local players? perceptions of geographical indications: a case study of pelotas sweets in southern Brazil," Economia agro-alimentare, FrancoAngeli Editore, vol. 16(3), pages 13-25.
    16. Brown, David P. & Eckert, Andrew, 2021. "Analyzing firm behavior in restructured electricity markets: Empirical challenges with a residual demand analysis," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    17. 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.
    18. Nakajima, Toru, 2012. "Estimating Time Variation of Market Power: Case of U.S. Soybean Exports," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124775, Agricultural and Applied Economics Association.
    19. Reiss, Peter C. & Wolak, Frank A., 2003. "Structural Econometric Modeling: Rationales and Examples from Industrial Organization," Research Papers 1831, Stanford University, Graduate School of Business.
    20. Kallfaß, Hermann H., 1996. "Konzepte und Indikatoren zur Abgrenzung räumlicher Märkte in der europäischen Zusammenschlußkontrolle," Ilmenau Economics Discussion Papers 7, Ilmenau University of Technology, Institute of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bjafio:v:12:y:2014:i:1:p:12:n:9. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.