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US and Chinese Strategic Trade Policies and Product Differentiation in the ASEAN Apple Market

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  • Jeff Luckstead
  • Stephen Devadoss
  • Ron C. Mittelhammer

Abstract

We investigate oligopolistic competition between US and Chinese apple exporters in the ASEAN market using strategic trade theory and the NEIO literature. We also analyze competition in the US and Chinese domestic markets. The US supplies higher quality apples to ASEAN than China, resulting in product differentiation. The results show that US exporters had a higher markup than Chinese exporters through the 1990s; however, as the share of Chinese apples expanded, the US markup declined and the Chinese markup increased dramatically. Competitive pricing prevails both in the US and Chinese domestic markets.

Suggested Citation

  • Jeff Luckstead & Stephen Devadoss & Ron C. Mittelhammer, 2014. "US and Chinese Strategic Trade Policies and Product Differentiation in the ASEAN Apple Market," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 613-637, December.
    • Handle: RePEc:taf:intecj:v:28:y:2014:i:4:p:613-637
    DOI: 10.1080/10168737.2014.920894
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    1. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315, December.
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    Cited by:

    1. Stephen Devadoss & William Ridley, 2014. "Effects of the Mexican Apple Tariff on the World Apple Market," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 763-777, November.

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