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Russian market power in international wheat exports: Evidence from a residual demand elasticity analysis

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  • Uhl, Kerstin Marit
  • Perekhozhuk, Oleksandr
  • Glauben, Thomas

Abstract

Russia has emerged as a major wheat exporter since the beginning of the 2000s, and today, it possesses high market shares in several wheat-importing countries in the Middle East and North African region. This has raised concerns that Russia might abuse its dominant market position by pricing above marginal cost. Using a novel dataset with weekly information on Russian wheat exports, we apply the residual demand elasticity method to analyze the pricing behavior of Russia in its two most important export markets, i. e. Egypt and Turkey. Our estimation results reveal that Russia behaves competitively in Egypt while it exerts market power in Turkey with an estimated mark-up of 13.5 %.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:espost:207165
    DOI: 10.1515/jafio-2016-0026
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    References listed on IDEAS

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    1. Garafova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2015. "Price Discrimination and Pricing-to-Market Behavior of Black Sea Region Wheat Exporters," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 47(3), September.
    2. Kerstin Uhl & Oleksandr Perekhozhuk & Thomas Glauben, 2016. "Price Discrimination in Russian Wheat Exports: Evidence from Firm-level Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 722-740, September.
    3. repec:wbk:wbpubs:23969 is not listed on IDEAS
    4. 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.
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    8. Zsombor Pall & Oleksandr Perekhozhuk & Ramona Teuber & Thomas Glauben, 2013. "Are Russian Wheat Exporters Able to Price Discriminate? Empirical Evidence from the Last Decade," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 177-196, February.
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    1. Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde, 2022. "Agricultural policies and technical efficiency of wheat production in Kazakhstan and Russia: Evidence from a stochastic frontier approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(3), pages 407-421.
    2. Ghoshray, Atanu, 2026. "Price Dynamics and Structural Change in the World Wheat Export Market: New Methods and New Evidence," 100th Annual Conference, March 23-25, 2026, Wadham College, University of Oxford, Oxford, UK 397906, Agricultural Economics Society (AES).
    3. Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2023. "The oligopolistic behavior of Kazakh and Russian wheat exporters in the South Caucasus: Evidence from a residual demand elasticity analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 23(1-2), pages 1-32.

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