Price, Quality, and International Agricultural Trade
Darian Woods (darian.woods@treasury.govt.nz) and
Andrew Coleman (andrew.coleman@motu.org.nz)
Additional contact information
Darian Woods: The Treasury
Andrew Coleman: Motu Economic and Public Policy Research and the Treasury
No 12_08, Working Papers from Motu Economic and Public Policy Research
Abstract:
The average value of a particular class of agricultural exports varies widely across different destinations. This raises the question: 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.” This paper use a variety of trade data and techniques to examine which explanation is most likely to be relevant. While the answers are not definitive, there is little support for the hypothesis that exports are curtailed.
Keywords: Agriculture; exports; emissions trading scheme; price; quality; market power; international trade; New Zealand (search for similar items in EconPapers)
JEL-codes: D43 F12 F14 F18 Q17 Q56 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2012-07
New Economics Papers: this item is included in nep-agr, nep-env and nep-int
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Citations: View citations in EconPapers (3)
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Persistent link: https://EconPapers.repec.org/RePEc:mtu:wpaper:12_08
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