Agricultural Trade Liberalization and Downstream Market Power: The Ad Valorem Case

Mohammad Mainul Hoque and John Schroeter

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: Exports of agricultural commodities to developed countries play a significant role in the economies of many developing countries. The elimination of import tariffs has the potential to benefit producers in the developing countries, but estimates of the extent of the gains from trade liberalization typically assume perfect competition. Significant concentration in the food processing and retailing sectors of the U.S. and the EU undermine the plausibility of this assumption in the case of agricultural trade, however. Sexton, Sheldon, McCorriston, and Wang (2007) develop a model of the effects of trade liberalization that accounts for the vertically-linked and concentrated characteristics of the developed countries' food markets. Their analysis is limited to the case of a constant per unit tariff, however. In this paper, we extend the analysis of the effects of trade liberalization in the presence of downstream market power to the case of an ad valorem tariff and we find important qualitative differences from the results for the unit tariff case.

Keywords: oligopoly; oligopsony; trade liberalization; ad valorem tariff (search for similar items in EconPapers)
JEL-codes: F12 L13 (search for similar items in EconPapers)
Date: 2010-12-06
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Journal of Agricultural & Food Industrial Organization, December 2010, vol. 8 no. 1

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Agricultural Trade Liberalization and Downstream Market Power: The Ad Valorem Case (2010)
Working Paper: Agricultural Trade Liberalization and Downstream Market Power: The Ad Valorem Case (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:32163

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().