IDEAS home Printed from https://ideas.repec.org/p/ags/eaae05/24754.html
   My bibliography  Save this paper

Vertical Market Structure, Commodity Exports and Trade Reform

Author

Listed:
  • McCorriston, Steve
  • Sexton, Richard J.
  • Sheldon, Ian M.

Abstract

In the analysis of commodity markets, comparatively little attention is paid to the fact that commodity exports are intermediates that form inputs into the food processing and retail sectors in developed countries. Exporting countries correspondingly argue that access to developed country markets are determined by market structure characteristics of the downstream food sector. Given the vertical nature of these markets, they are most appropriately characterised by successive oligopoly and/or oligopsony. We explore trade policy issues facing commodity exporters, and show that the impact of tariff reform on commodity exporters is determined by the market structure characteristics of the downstream sectors.

Suggested Citation

  • McCorriston, Steve & Sexton, Richard J. & Sheldon, Ian M., 2005. "Vertical Market Structure, Commodity Exports and Trade Reform," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24754, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24754
    DOI: 10.22004/ag.econ.24754
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/24754/files/cp05mc02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.24754?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
    ---><---

    References listed on IDEAS

    as
    1. Spencer, Barbara J. & Jones, Ronald W., 1992. "Trade and protection in vertically related markets," Journal of International Economics, Elsevier, vol. 32(1-2), pages 31-55, February.
    2. Horn, Henrik & Levinsohn, James, 2001. "Merger Policies and Trade Liberalisation," Economic Journal, Royal Economic Society, vol. 111(470), pages 244-276, April.
    3. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    4. Ishikawa, Jota & Spencer, Barbara J., 1999. "Rent-shifting export subsidies with an imported intermediate product," Journal of International Economics, Elsevier, vol. 48(2), pages 199-232, August.
    5. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 349-371, July.
    6. Ronald W. Cotterill, 1999. "Continuing Concentration in the U.S.: Strategic Challenges to an Unstable Status Quo," Food Marketing Policy Center Research Reports 048, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    7. Cotterill, Ronald W., 1999. "Continuing Concentration in Food Industries Globally: Strategic Challenges to an Unstable Status Quo," Research Reports 25190, University of Connecticut, Food Marketing Policy Center.
    Full references (including those not matched with items on IDEAS)

    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. Sexton, Richard J. & Sheldon, Ian M. & McCorriston, Steve & Wang, Humei, 2004. "Analyzing Vertical Market Structure And Its Implications For Trade Liberalization," 2004 Annual meeting, August 1-4, Denver, CO 20060, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. McCorriston, Steve & Sheldon, Ian M., 2004. "Tariff Escalation And The Developing Countries: How Can Market Access Be Improved In The Doha Round Of Trade Negotiations?," 2004 Annual meeting, August 1-4, Denver, CO 20156, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Gjermund Nese & Odd Straume, 2007. "Industry Concentration and Strategic Trade Policy in Successive Oligopoly," Journal of Industry, Competition and Trade, Springer, vol. 7(1), pages 31-52, March.
    4. Gjermund Nese & Odd Straume, 2007. "Industry Concentration and Strategic Trade Policy in Successive Oligopoly," Experimental Economics, Springer;Economic Science Association, vol. 7(1), pages 31-52, March.
    5. Jan Fałkowski, 2008. "Vertical coordination from the angle of farmer loyalty and access to credit. Evidence from the Polish dairy sector," Working Papers 2008-01, Faculty of Economic Sciences, University of Warsaw.
    6. Barbara Spencer, 2005. "International outsourcing and incomplete contracts," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1107-1135, November.
    7. Wang, Kuang-Cheng A. & Koo, Hui-Wen & Chen, Tain-Jy, 2011. "Domestic trade protection in vertically-related markets," Economic Modelling, Elsevier, vol. 28(4), pages 1595-1603, July.
    8. Tai‐Liang Chen & Ying Kuang, 2023. "Endogenous timing, strategic tariff game and bilateral trade in vertical oligopoly," Pacific Economic Review, Wiley Blackwell, vol. 28(1), pages 74-96, February.
    9. Amy J. Glass & Kamal Saggi, 2005. "Exporting versus Direct Investment under Local Sourcing," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(4), pages 627-647, December.
    10. Chen, Yongmin & Ishikawa, Jota & Yu, Zhihao, 2004. "Trade liberalization and strategic outsourcing," Journal of International Economics, Elsevier, vol. 63(2), pages 419-436, July.
    11. Ishikawa, Jota & Lee, Ki-Dong, 1997. "Backfiring tariffs in vertically related markets," Journal of International Economics, Elsevier, vol. 42(3-4), pages 395-423, May.
    12. John M. Connor, 2003. "The Changing Structure Of Global Food Markets: Dimensions, Effects, And Policy Implications," Working Papers 03-02, Purdue University, College of Agriculture, Department of Agricultural Economics.
    13. Dibyendu Maiti & Uday Bhanu Sinha, 2025. "ICT adoption, trade composition and welfare," International Economics and Economic Policy, Springer, vol. 22(1), pages 1-25, February.
    14. Ki‐Dong Lee & Kangsik Choi & DongJoon Lee, 2020. "Endogenous vertical structure and trade policy in an import‐competing market," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1431-1445, December.
    15. Wang, Leonard F.S. & Lee, Jen-yao, 2014. "Ranking the optimum tariff and the maximum revenue tariff in vertically related markets," Research in Economics, Elsevier, vol. 68(3), pages 222-229.
    16. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 349-371, July.
    17. Sheldon, Ian M., 2017. "The Competitiveness Of Agricultural Product And Input Markets: A Review And Synthesis Of Recent Research," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(1), pages 1-44, February.
    18. Tomohiro ARA & Arpita CHATTERJEE & Arghya GHOSH & Hongyong ZHANG, 2019. "Input Tariff in Oligopoly: Entry, heterogeneity, and demand curvature," Discussion papers 19066, Research Institute of Economy, Trade and Industry (RIETI).
    19. repec:ebl:ecbull:v:6:y:2008:i:8:p:1-7 is not listed on IDEAS
    20. Kangsik Choi & Ki-Dong Lee, 2024. "Strategic delegation and tariff protection with network externalities," The Japanese Economic Review, Springer, vol. 75(1), pages 93-119, January.
    21. Hong Hwang & Chao†Cheng Mai & Shih†Jye Wu, 2017. "Tariff Escalation and Vertical Market Structure," The World Economy, Wiley Blackwell, vol. 40(8), pages 1597-1613, August.

    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:ags:eaae05:24754. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.