IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/211642.html
   My bibliography  Save this paper

An econometric analysis of market power in Azerbaijani wheat market: Evidence from Kazakhstan and Russia

Author

Listed:
  • Gafarova, Gulmira
  • Perekhozhuk, Oleksandr
  • Glauben, Thomas

Abstract

Azerbaijan is a net-importer of wheat with average self-sufficiency ratio of 55%. In order to meet the domestic needs completely, Azerbaijan imports wheat mainly from Kazakhstan and Russia. The objective of this study is to investigate the extent of market power exercised by the Kazakh and Russian exporters in Azerbaijani wheat import market. Toward this aim, we apply the Residual Demand Elasticity approach, and fit the model with monthly time-series data covering the period from January 2004 to December 2013. Total export quantity of an exporting country and population of an importing country are selected as excluded variables in this analysis. The empirical results demonstrate that the Russian exporters exercise market power in Azerbaijani wheat market, but the Kazakh exporters face perfect competition. Moreover, we argue that the Ukrainian exporters are able to constraint both Kazakh and Russian exporters’ market powers in Azerbaijani wheat market.

Suggested Citation

  • Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2015. "An econometric analysis of market power in Azerbaijani wheat market: Evidence from Kazakhstan and Russia," 2015 Conference, August 9-14, 2015, Milan, Italy 211642, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211642
    DOI: 10.22004/ag.econ.211642
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/211642/files/Gafarova-An%20econometric%20analysis%20of%20market%20power%20in%20Azerbaijani%20wheat%20market-756.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.211642?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. Carter, Colin A. & MacLaren, Donald & Yilmaz, Alper, 1999. "How Competitive Is The World Wheat Market?," Working Papers 11973, University of California, Davis, Department of Agricultural and Resource Economics.
    2. Gafarova, 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, Cambridge University Press, vol. 47(3), pages 287-316, August.
    3. Glauben, Thomas & Imamverdiyev, Nizami & Perekhozhuk, Oleksandr & Prehn, Sören, 2014. "Competitive Structure of Kazakhstan, Russia and Ukraine in World Wheat Market: Gravity Model Approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182949, European Association of Agricultural Economists.
    4. Götz, Linde & Glauben, Thomas & Brümmer, Bernhard, 2013. "Wheat export restrictions and domestic market effects in Russia and Ukraine during the food crisis," Food Policy, Elsevier, vol. 38(C), pages 214-226.
    5. Goldberg, Pinelopi Koujianou & Knetter, Michael M., 1999. "Measuring the intensity of competition in export markets," Journal of International Economics, Elsevier, vol. 47(1), pages 27-60, February.
    6. Baker, Jonathan B. & Bresnahan, Timothy F., 1988. "Estimating the residual demand curve facing a single firm," International Journal of Industrial Organization, Elsevier, vol. 6(3), pages 283-300.
    7. Reed, Michael R. & Saghaian, Sayed H., 2004. "Measuring the Intensity of Competition in the Japanese Beef Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-9, April.
    8. Zsombor Pall & Oleksandr Perekhozhuk & Thomas Glauben & Sören Prehn & Ramona Teuber, 2014. "Residual demand measures of market power of Russian wheat exporters," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 381-391, May.
    9. Jeonghoi Kim, 2010. "Recent Trends in Export Restrictions," OECD Trade Policy Papers 101, OECD Publishing.
    10. Marie‐Hélène Felt & Jean‐Philippe Gervais & Bruno Larue, 2011. "Market power and import bans: the case of Japanese pork imports," Agribusiness, John Wiley & Sons, Ltd., vol. 27(1), pages 47-61, Winter.
    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. Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2017. "Analysis Of Oligopolistic Behaviour Of Kazakh And Russian Exporters In The South Caucasus Wheat Market," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261429, European Association of Agricultural Economists.
    2. Gulmira Gafarova & Oleksandr Perekhozhuk & Thomas Glauben, 2023. "The Oligopolistic Behavior of Kazakh and Russian Wheat Exporters in the South Caucasus: Evidence from a Residual Demand Elasticity Analysis," Journal of Industry, Competition and Trade, Springer, vol. 23(1), pages 1-32, June.
    3. Evans, Edwardv A. & Ballen, Fredy H., 2015. "Competitive Behavior in the U.S. Green Skin Avocado Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-12, November.
    4. Páll, Zsombor, 2015. "Three essays on the Russian wheat export," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 80, number 80.
    5. Nakajima, Toru, 2012. "Estimating Time Variation of Market Power: Case of U.S. Soybean Exports," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124775, Agricultural and Applied Economics Association.
    6. Zsombor Pall & Oleksandr Perekhozhuk & Thomas Glauben & Sören Prehn & Ramona Teuber, 2014. "Residual demand measures of market power of Russian wheat exporters," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 381-391, May.
    7. Zhang, Qiang & Reed, Michael R. & Saghaian, Sayed H., 2007. "Export Market Pricing Decisions and Market Power in World Grain Markets: A Duopoly Model for Soybeans," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34949, Southern Agricultural Economics Association.
    8. Tsaiyu Chang & Masafumi Inoue, 2013. "Market Power in the Log and Lumber Import Market in Japan," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(2), pages 131-146, May.
    9. Crespi, John M. & Hahn, William & Jones, Keithly & Schulz, Lee L. & Chen, Chen-Ti, 2016. "A Study in U.S. Export Beef Competitiveness: Do Cattle Inventories Matter?," 2017 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2017, Chicago, Illinois 250113, Agricultural and Applied Economics Association.
    10. Labson, B. Stephen & Rausser, Gordon C., 1992. "Modeling Phased Reduction of Distortionary Policies in the U.S. Wheat Market Under Alternative Macroeconomic Environments," Staff General Research Papers Archive 502, Iowa State University, Department of Economics.
    11. Cho, Guedae & Jin, Hyun Joung & Koo, Won W., 2002. "Measuring The Market Power Of The U.S. Wheat Exporters In Asian Countries: An Issue About Adjustment Of Nominal Exchange Rate When Using As A Cost Shifter; The Competitiveness Of The U.S. Wheat Export," 2002 Annual meeting, July 28-31, Long Beach, CA 19885, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. C. S. C. Sekhar, 2010. "Structure of the World Wheat Market: Some Implications for Strategic Trade Policy?," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(2), pages 142-158.
    13. Silveira, Jáilison W. & Resende, Marcelo, 2020. "Competition in the international niobium market: A residual demand approach," Resources Policy, Elsevier, vol. 65(C).
    14. Pan, Suwen & Hudson, Darren & Ethridge, Don E., 2009. "The Influence Of Market Structure On The Impacts Of Domestic Subsidies On International Cotton Marekts," 2009 Conference, August 16-22, 2009, Beijing, China 51196, International Association of Agricultural Economists.
    15. Yasser S. A. Mazrou, 2015. "Does Egyptian orange exports really have a market power in Saudi Arabia market?," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 5(7), pages 167-174, July.
    16. Balogh, J.M., 2018. "Analyzing the pricing to market behavior of the New World on EU wine market," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276995, International Association of Agricultural Economists.
    17. Pan, Suwen & Hudson, Darren & Ethridge, Don E., 2010. "Market Structure Impacts on Market Distortions from Domestic Subsidies: The U. S. Cotton Case," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-19, December.
    18. 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.
    19. Yamaura, Koichi, 2011. "Market Power of The Japanese Non-GM Soybean Import Market: The U.S. Exporters vs. Japanese Importers," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 1(04), pages 1-12, December.
    20. Jinghua Xie & Dengjun Zhang, 2014. "Imperfect Competition and Structural Changes in the US Salmon Import Market," Marine Resource Economics, University of Chicago Press, vol. 29(4), pages 375-389.

    More about this item

    Keywords

    Crop Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:iaae15:211642. 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/iaaeeea.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.