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State Trading Enterprises in a Differentiated Product Environment: The Case of Global Malting Barley Markets

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  • Fengxia Dong
  • Thomas L. Marsh
  • Kyle W. Stiegert

Abstract

This study tested if the exclusive procuring and pricing policies of two state trading enterprises (STEs) in international malting barley markets could be used in a strategic trade context. The research provided four key findings. First, the global malting barley market operated in a quantity-setting oligopolistic structure during the study years. Second, both STEs and other exporting countries were in Cournot competition and thus made available strategic trade possibilities. Third, initial commodity payments were too high to generate a rent-shifting outcome. Fourth, product differentiation was confirmed, which may have dampened the desire/ability of STEs to pursue a rent-shifting objective. Copyright 2006, Oxford University Press.

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  • Fengxia Dong & Thomas L. Marsh & Kyle W. Stiegert, 2006. "State Trading Enterprises in a Differentiated Product Environment: The Case of Global Malting Barley Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 90-103.
  • Handle: RePEc:oup:ajagec:v:88:y:2006:i:1:p:90-103
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    Cited by:

    1. Margherita Scoppola, 2010. "The Liberalisation of Tariff Rate Quotas under Oligopolistic Competition," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 584-604.
    2. Paulus, Moritz & Trueby, Johannes & Growitsch, Christian, 2011. "Nations as Strategic Players in Global Commodity Markets: Evidence from World Coal Trade," EWI Working Papers 2011-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    3. Soregaroli, Claudio & Sckokai, Paolo, 2011. "Modelling Agricultural Commodity Markets under Imperfect Competition," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116012, European Association of Agricultural Economists.
    4. Bourgeon, Jean-Marc & Jean, Sebastien & Maillet, Anais, 2015. "State Trading Enterprises and Price Stabilization," 2015 Conference, August 9-14, 2015, Milan, Italy 211367, International Association of Agricultural Economists.
    5. Margherita Scoppola, 2007. "Economies of scale and market structure in international grain trade," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 277-291, September.

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