SPATIAL EQUILIBRIUM MODELING WITH IMPERFECTLY COMPETITIVE MARKETS: AN APPLICATION TO RICE TRADE

Chi-Chung Chen, Bruce McCarl, Ching-Cheng Chang and Shih-Hsun Hsu

No 19687, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: A general imperfect competition spatial equilibrium model is developed to estimate the trading country behaviors in the international rice market using a conjectural variation approach. Such a model allows the possibility of an imperfect competitive market to exit on both the export and import sides without any assumption of market structure. The empirical results show that the major exporting countries, Thailand, Vietnam, and the U.S. acted as high degree of imperfect competitors(or oligopolies) while Pakistan acted as a lower degree of imperfect competitor. The importing countries such as Japan, the Philippines, Europe, Brazil, and the former USSR behaved as high degree of imperfect competitors (or oligopsonies). The empirical results also show that there are welfare gains of $1,492 million when all trading countries comply with the free trade agreement.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 25
Date: 2002
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19687

DOI: 10.22004/ag.econ.19687

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