Hostname: page-component-78c5997874-8bhkd Total loading time: 0 Render date: 2024-11-10T10:12:25.326Z Has data issue: false hasContentIssue false
  • English
  • Français

Apple Export Competition between the United States and China in the Association of Southeast Asian Nations

Published online by Cambridge University Press:  12 June 2017

Jeff Luckstead ,
Stephen Devadoss  and
Ron C. Mittelhammer
Jeff Luckstead
Affiliation:
University of Arkansas, Fayetteville, Arkansas
Stephen Devadoss
Affiliation:
University of Idaho, Moscow, Idaho
Ron C. Mittelhammer
Affiliation:
Washington State University, Pullman, Washington
Get access Rights & Permissions [Opens in a new window]

Extract

We developed a trade model under imperfect competition to analyze the market power of U.S. and Chinese apple producers in the Association of Southeast Asian Nations (ASEAN) market and their domestic markets and the elimination of ASEAN tariffs on U.S. and Chinese apples. We also formulated welfare functions for the United States, China, and ASEAN. Comparative static results are derived to analyze the effect of tariff changes on exports, domestic sales, and welfare. Based on the theoretical model, we derived an econometric specification and used the new empirical industrial organization literature to estimate the market power of U.S. and Chinese apple producers. The econometric model is simulated to quantify the effect of tariff removal on exports and domestic sales.

Keywords

applesASEANimperfect competitionmarket powertrade policyF12F13L13
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 4 , November 2014 , pp. 635 - 647
Copyright
Copyright © Southern Agricultural Economics Association 2014

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aw, B.Y., Chung, S., and Roberts, M.J.. “Productivity and Turnover in the Export Market: Micro-Level Evidence from the Republic of Korea and Taiwan (China).” The World Bank Economic Review 14(2000):65–90.Google Scholar
Brander, J., and Krugman, P.. “A ‘Reciprocal Dumping’ Model of International Trade.” Journal of International Economics 15(1983):313-21.Google Scholar
Brander, J.A. “Intra-Industry Trade in Identical Commodities.” Journal of International Economics 11(1981): 1–14.Google Scholar
Brander, J.A., and Spencer, B.J.. “Export Subsidies and International Market Share Rivalry.” Journal of International Economics 18(1985): 83–100.Google Scholar
Bresnahan, T.F. “The Oligopoly Solution Concept Is Identified.” Economics Letters 10(1982):87–92.Google Scholar
Devadoss, S., Luckstead, J., and Mittelhammer, R.. “Econometric Issues Related to Identification of the Market Power Parameter.” Applied Economics 45(2013):4533-38.Google Scholar
Food and Agricultural Organization—FAOSTAT. 2012. Internet site: http://faostat.fao.org/default.aspx (Accessed May 23, 2012).Google Scholar
Gale, F., Huang, S., and Gu, Y.. Investment in Processing Industry Turns Chinese Apples into Juice Exports. Washington, DC: U.S. Department of Agriculture/Economic Research Service, FST-344-01, 2011.Google Scholar
International Labour Organization—LABORSTA. Internet site: http://laborsta.ilo.org/default.html (Accessed December 11, 2011).Google Scholar
International Monetary Fund—World Economic and Financial Surveys, World Economic Outlook Database. Internet site: http://www.imf.org/ external/pubs/ft/weo/2011/01/weodata/index.aspx (Accessed December 9, 2011).Google Scholar
Intriligator, M.D. “Economic and econometric models.” Handbook of Econometrics. Griliches, Z. and Intriligator, M.D., eds. Amsterdam, The Netherlands: North-Holland, 1983.Google Scholar
Kim, C., Schaible, G.D., and Daberkow, S.G.. “The Relative Impacts of U.S. Bio-Fuel Policies on Fuel-Energy Markets: A Comparative Static Analysis.” Journal of Agricultural and Applied Economics 42(2010): 121-32.Google Scholar
Krugman, P.R. “Increasing Returns, Monopolistic Competition, and International Trade.” Journal of International Economics 9(1979):469-79.Google Scholar
Lancaster, K. “Intra-Industry Trade under Perfect Monopolistic Competition.” Journal of International Economics 10(1980):151-75.CrossRefGoogle Scholar
Luckstead, J. “Essays in Policy Analysis: Strategic Trade Theory and the Elimination of Agricultural Subsidies.” PhD dissertation, Washington State University, May 2013.Google Scholar
MacDonald, J.M., and Key, N.D.. “Market Power in Poultry Production Contracting? Evidence from a Farm Survey.” Journal of Agricultural and Applied Economics 44(2012): 477-90.Google Scholar
McCracken, V.A., Tansuhaj, P., O'Rourke, A.D., and Walter, K.. “Strategies for U.S. Apple Exporting Firms.” Journal of Food Distribution Research 22(1991):63–75.Google Scholar
National Bureau of Statistics of China—Statistical Data. 2011. China Statistical Yearbook. Internet site: http://www.stats.gov.cn/english/statisticaldata/yearlydata/ (Accessed May 4, 2012).Google Scholar
The World Bank—World Development Indicators Database. 2011. Internet site: http://data.worldbank.org/data-catalog/world-development-indicators (Accessed May 4, 2012).Google Scholar
U.S. Census Bureau—Foreign Trade Statistics. 2011. Internet site: http://www.census.gov/foreign-trade/statistics/index.html (Accessed May 7, 2012).Google Scholar
U.S. Department of Agriculture—Quick Stats, National Agricultural Statistics Service. 2011. Internet site: http://www.nass.usda.gov (Accessed May 17, 2012).Google Scholar
U.S. International Trade Commission. China's Agricultural Trade: Competitive Conditions and Effects on U.S. Exports. U.S. International Trade Commission, Publication 4219, 2011.Google Scholar
World Trade Organization—Tariff Analysis Online. 2011. Internet site: http://tariffanalysis.wto.org/default.aspx (Accessed May 10, 2012).Google Scholar
Zhang, X., Qiu, H., and Huang, Z.. “Linking Small Scale Farmers in China with the International Markets: A Case of Apple Export Chains.” International Food and Agribusiness Management Review 12(2009):89–110.Google Scholar