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Vertical Market Structure, Commodity Exports and Trade Reform

Steve McCorriston, Richard J. Sexton and Ian Sheldon ()

No 24754, 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark from European Association of Agricultural Economists

Abstract: In the analysis of commodity markets, comparatively little attention is paid to the fact that commodity exports are intermediates that form inputs into the food processing and retail sectors in developed countries. Exporting countries correspondingly argue that access to developed country markets are determined by market structure characteristics of the downstream food sector. Given the vertical nature of these markets, they are most appropriately characterised by successive oligopoly and/or oligopsony. We explore trade policy issues facing commodity exporters, and show that the impact of tariff reform on commodity exporters is determined by the market structure characteristics of the downstream sectors.

Keywords: Industrial Organization; International Relations/Trade (search for similar items in EconPapers)
Pages: 13
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae05:24754

DOI: 10.22004/ag.econ.24754

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