IDEAS home Printed from https://ideas.repec.org/p/ags/ifma13/345682.html

PR - Export Instability When International Agricultural Markets Operate Under Oligopoly

Author

Listed:
  • May, Daniel E.

Abstract

This article uses a theoretical model to show that instability in international markets of agricultural commodities may increase as a consequence of power imbalance exiting in the food chain supply. This instability, in turn, may cause negative impacts on the environment. The article argues that in order to minimize this problem, informational strategies should be implemented at the farming level.

Suggested Citation

  • May, Daniel E., 2013. "PR - Export Instability When International Agricultural Markets Operate Under Oligopoly," 19th Congress, Warsaw, Poland, 2013 345682, International Farm Management Association.
  • Handle: RePEc:ags:ifma13:345682
    DOI: 10.22004/ag.econ.345682
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345682/files/13_May_P263-274v3.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.345682?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. Denise Stanley & Sirima Bunnag, 2001. "A new look at the benefits of diversification: lessons from Central America," Applied Economics, Taylor & Francis Journals, vol. 33(11), pages 1369-1383.
    2. Saitone, Tina L. & Sexton, Richard J. & Sexton, Steven E., 2008. "Market Power in the Corn Sector: How Does It Affect the Impacts of the Ethanol Subsidy?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-26.
    3. Lutz, Matthias, 1994. "The effects of volatility in the terms of trade on output growth: New evidence," World Development, Elsevier, vol. 22(12), pages 1959-1975, December.
    4. Jansen, Marion, 2004. "Income volatility in small and developing economies: export concentration matters," WTO Discussion Papers 3, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Wong, Chung Ming, 1986. "Models of export instability and empirical tests for less-developed countries," Journal of Development Economics, Elsevier, vol. 20(2), pages 263-285, March.
    6. François Bourguignon, 2004. "Trade exposure and income volatility in cash-crop exporting developing countries," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(3), pages 369-387, September.
    7. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Papers 12609, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    8. Steve McCorriston & Donald MacLaren, 2007. "Deregulation as (Welfare Reducing) Trade Reform: the Case of the Australian Wheat Board," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 637-650.
    9. Byeong‐Il Ahn & Hyunok Lee, 2010. "An equilibrium displacement approach to oligopoly market analysis: an application to trade in the Korean infant formula market," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 101-109, March.
    10. 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.
    11. Reimer Jeffrey J & Stiegert Kyle, 2006. "Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-27, September.
    12. Ramey, Garey & Ramey, Valerie A, 1995. "Cross-Country Evidence on the Link between Volatility and Growth," American Economic Review, American Economic Association, vol. 85(5), pages 1138-1151, December.
    13. Edward B. Barbier, 2004. "Explaining Agricultural Land Expansion and Deforestation in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1347-1353.
    14. Boehlje, Michael & Doering, Otto C., III, 2000. "Farm Policy In An Industrialized Agriculture," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(01), pages 1-8, March.
    15. T. A. Lloyd & S. McCorriston & C. W. Morgan & A. J. Rayner, 2006. "Food scares, market power and price transmission: the UK BSE crisis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 119-147, June.
    16. Turnovsky, Stephen J. & Chattopadhyay, Pradip, 2003. "Volatility and growth in developing economies: some numerical results and empirical evidence," Journal of International Economics, Elsevier, vol. 59(2), pages 267-295, March.
    17. Polasky, Stephen & Costello, Christopher & McAusland, Carol, 2004. "On trade, land-use, and biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 911-925, September.
    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. Daniel Esteban May, 2012. "Addressing biodiversity loss when international markets of agricultural commodities are oligopolistic," Economics and Business Letters, Oviedo University Press, vol. 1(1), pages 53-57.
    2. May, Daniel E., 2011. "Incentives of small countries to participate in a global free trade agreement in agriculture: a theoretical analysis," Economi­a Agraria (Revista Economia Agraria), Agrarian Economist Association (AEA), Chile, vol. 15, pages 1-7.
    3. May, Daniel E., 2011. "Incentives of small countries to participate in a global free trade agreement in agriculture: a theoretical analysis," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15.
    4. Salim B. Furth, 2010. "Terms of Trade Volatility and Precautionary Savings in Developing Economies," DEGIT Conference Papers c015_013, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. May, Daniel E., "undated". "Bilateralism in Agriculture when Countries use Distorting Domestic Policies," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114657, European Association of Agricultural Economists.
    6. Ian M. Sheldon, 2021. "Reflections on a Career as an Industrial Organization and International Economist," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 468-499, June.
    7. Pall, Zsombor & Perekhozhuk, Oleksandr & Teuber, Ramona & Glauben, Thomas, 2011. "Wheat trade - does Russia price discriminate across export destinations?," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 15, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    8. Turnovsky, Stephen J. & Chattopadhyay, Pradip, 2003. "Volatility and growth in developing economies: some numerical results and empirical evidence," Journal of International Economics, Elsevier, vol. 59(2), pages 267-295, March.
    9. Daniel May, 2011. "Agricultural trade liberalization under bilateralism: an international network perspective," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 10(1), pages 23-34, April.
    10. Patrick Guillaumont, 2009. "An Economic Vulnerability Index: Its Design and Use for International Development Policy," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 193-228.
    11. Qianqian Shao & Thorsten Janus & Maarten J. Punt & Justus Wesseler, 2018. "The Conservation Effects of Trade with Imperfect Competition and Biased Policymakers," Agriculture, MDPI, vol. 8(7), pages 1-22, July.
    12. Kodama, Masahiro, 2013. "Growth-cycle nexus," IDE Discussion Papers 387, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    13. Dimitrios Bakas & Georgios Chortareas & Georgios Magkonis, 2019. "Volatility and growth: a not so straightforward relationship," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 874-907.
    14. Hediger, Werner, "undated". "Agriculture’s Multifunctionality, Sustainability, and Social Responsibility," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36854, Agricultural Economics Society.
    15. Bakucs, Lajos Zoltán & Fertő, Imre & Hockmann, Heinrich & Perekhozhuk, Oleksandr, 2009. "Market power on the edge? An analysis of the German and Hungarian hog markets," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58(8), pages 337-345.
    16. Barbara Annicchiarico & Alessandra Pelloni, 2014. "Productivity growth and volatility: how important are wage and price rigidities?," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 306-324, January.
    17. Pinar Deniz & Thanasis Stengos & M. Ege Yazgan, 2021. "Revisiting the link between output growth and volatility: panel GARCH analysis," Empirical Economics, Springer, vol. 61(2), pages 743-771, August.
    18. Patrick GUILLAUMONT, 2007. "EVI and its Use. Design of an Economic Vulnerability Index and its Use for International Development Policy," Working Papers 200714, CERDI.
    19. Jinho Jung & Juan Sesmero & Ralph Siebert, 2022. "A structural estimation of spatial differentiation and market power in input procurement," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 613-644, March.
    20. Kose, M. Ayhan & Prasad, Eswar S. & Terrones, Marco E., 2006. "How do trade and financial integration affect the relationship between growth and volatility?," Journal of International Economics, Elsevier, vol. 69(1), pages 176-202, June.

    More about this item

    Keywords

    ;

    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:ifma13:345682. 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/ifmaaea.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.