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Price, Quality, and International Agricultural Trade

  • Woods, Darian
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    The average value of a particular class of agricultural exports varies widely across different destinations. In the event of a supply shock, such as the implementation of the Emissions Trading Scheme, can farmers offset higher costs by raising their average prices by contracting exports to lower value destinations? If the difference in value reflects different prices because producers have market power, the answer will be ―yes‖. If the difference in value reflects differences in the quality of goods exported to different destinations, the answer is ―no.‖ While not definitive, there is little support for the hypothesis that exports are curtailed.

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    File URL: http://purl.umn.edu/136073
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    Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2012 Conference, August 31, 2012, Nelson, New Zealand with number 136073.

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    Date of creation: Aug 2012
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    Handle: RePEc:ags:nzar12:136073
    Contact details of provider: Web page: http://www.nzares.org.nz/

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    1. Feenstra, Robert C, 1988. "Quality Change under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 131-46, February.
    2. Aiginger, Karl, 1997. "The Use of Unit Values to Discriminate between Price and Quality Competition," Cambridge Journal of Economics, Oxford University Press, vol. 21(5), pages 571-92, September.
    3. Peter K. Schott, 2004. "Across-product Versus Within-product Specialization in International Trade," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 646-677, May.
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