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Impact of the US-EC price war on major wheat exporters' shares of the Chinese market

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  • Ahmadi-Esfahani, Fredoun Z.
  • Jensen, Paul H.

Abstract

China is both the world's largest producer and consumer of wheat. In an attempt to gain a larger slice of the important Chinese market, both the European Community and the United States have offered China subsidised wheat. In addition, other exporters have offered attractive credit arrangements to China. The objective of this paper is to measure the overall impact of these policies on each exporter's share of the Chinese market. To that end, an improved version of the constant market shares model is applied to data on Chinese wheat imports in the 1980's. The results indicate that the United States has been outperforming the other exporters since subsidised US wheat sales were authorised for China in 1987. The implications of the analysis for the smaller exporters and international wheat trade are discussed.
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  • Ahmadi-Esfahani, Fredoun Z. & Jensen, Paul H., 1994. "Impact of the US-EC price war on major wheat exporters' shares of the Chinese market," Agricultural Economics, Blackwell, vol. 10(1), pages 61-70, January.
  • Handle: RePEc:eee:agecon:v:10:y:1994:i:1:p:61-70
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    1. Jan Fagerberg & Gunnar Sollie, 1987. "The method of constant market shares analysis reconsidered," Working Papers Archives 1987001, Centre for Technology, Innovation and Culture, University of Oslo.
    2. Lardy,Nicholas R., 1992. "Foreign Trade and Economic Reform in China," Cambridge Books, Cambridge University Press, number 9780521414951, May.
    3. L. R. Rigaux, 1971. "Market Share Analysis Applied To Canadian Wheat Exports," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 19(1), pages 22-34, July.
    4. Richardson, J David, 1971. "Some Sensitivity Tests for a 'Constant-Market-Shares' Analysis of Export Growth," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 300-304, August.
    5. H. G. Brooks & S. Devadoss & W. H. Meyers, 1990. "The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(2), pages 253-277, July.
    6. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
    7. Anania, Giovanni & Bohman, Mary & Carter, Colin A., 1991. "U.S. Export Subsidies in Wheat: Strategic Trade Policy or An Expensive Beggar-My-Neighbor tactic?," Working Papers 51148, International Agricultural Trade Research Consortium.
    8. Chris M. Alaouze & A. S. Watson & N. H. Sturgess, 1978. "Oligopoly Pricing in the World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 173-185.
    9. Ahmadi-Esfahani, Fredoun Z. & Carter, Colin A., 1987. "A Dynamic Analysis Of Us Export Wheat Pricing And Market Shares," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(03), December.
    10. Brooks, H. G. & Devadoss, Stephen & Meyers, William H., 1990. "Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market (The)," Staff General Research Papers Archive 305, Iowa State University, Department of Economics.
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    Cited by:

    1. Ahmadi-Esfahani, Fredoun Z. & Anderson, Glenn Michael, 1999. "Constant Market Shares Analysis: Uses, Limitations and Prospects," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 122329, Australian Agricultural and Resource Economics Society.
    2. Chen, Kevin Z. & Duan, Yufeng, 2001. "Competitiveness Of Canadian Agri-Food Exports Against Competitors In Asia: 1980-97," Project Report Series 24042, University of Alberta, Department of Resource Economics and Environmental Sociology.
    3. Ahmadi-Esfahani, Fredoun Z., 2006. "Constant market shares analysis: uses, limitations and prospects," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), December.

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