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Impact of the Russian agricultural import ban on the Serbian pork exports and domestic price development along the pork value chain

I. Duric, Thomas Glauben () and V. Zaric

No 277201, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: In this paper, we analyze the effects of the Russian agricultural import ban in 2014, i.e. sudden access of the Serbian pork traders to the Russian market, on price and margin developments along the Serbian pork value chains. We use a regime-switching long-run price transmission model to investigate possible changes in market integration between Serbian and Russian pork markets, and at the same time identify if their newly established trade relation affect already existing integration of the Serbian market with the EU. Furthermore, we use the price transmission model to assess the effects of surge in Serbian pork export on transmission of price changes along the pork value chains. Our results indicate a significant improvement of market integration between Serbia and Russia after 2014 characterized by 80% reduction in transaction costs and almost complete transmission of price changes from the Serbian market towards Russian pork market. Also, the results of the domestic price effects indicate complete transmission of price changes from processors towards retailers after 2014, which means that Serbian consumers bore the biggest burden of significant domestic pork price changes caused by the surge in pork exports. Acknowledgement : This study was conducted within the DAAD PPP Serbien project, financially supported by the German Academic Exchange Service (DAAD).

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-cis, nep-int and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277201

DOI: 10.22004/ag.econ.277201

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