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Integration of the International Rice Market: Implications for Trade Liberalization

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  • Nielsen, Chantal Pohl
  • Yu, Wusheng

Abstract

A cointegration analysis performed in this paper finds that the international rice market is highly segmented. This is explained by the high degree of market intervention in this sector due to food security reasons and by strong consumer preferences for specific rice varieties. This finding is supported by subsequent estimation of the elasticities of substitution between rice imported from different sources. The estimates are found to be substantially lower than those often used in e.g. computable general equilibrium models. This implies that trade liberalization will have less of an impact than otherwise predicted

Suggested Citation

  • Nielsen, Chantal Pohl & Yu, Wusheng, 2002. "Integration of the International Rice Market: Implications for Trade Liberalization," Conference papers 330992, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330992
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    References listed on IDEAS

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    4. Hertel, Thomas W. & Anderson, Kym & Francois, Joseph F. & Martin, Will, 2000. "Agriculture and Non-agricultural Liberalization in the Millennium Round," Working papers 283441, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Deardoff, A.V. & Brown, D.K. & Stern, R.M. & Fox, A.K., 1995. "Computational Analysis of Goods and Services Liberalization in the Uruguay Round," Working Papers 379, Research Seminar in International Economics, University of Michigan.
    6. repec:fth:michin:379 is not listed on IDEAS
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