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Agricultural trade liberalization and economic development: the role of downstream market power
Agricultural economics, 2007-03, Vol.36 (2), p.253-270
[Peer Reviewed Journal]
ISSN: 0169-5150 ;EISSN: 1574-0862 ;DOI: 10.1111/j.1574-0862.2007.00203.x
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Title:
Agricultural trade liberalization and economic development: the role of downstream market power
Author:
Sexton, Richard J
;
Sheldon, Ian
;
McCorriston, Steve
;
Wang, Humei
Subjects:
Developing countries
;
F12
;
F13
;
O12
;
Oligopoly
;
Oligopsony
;
Trade liberalization
;
Vertical market structure
Is Part Of:
Agricultural economics, 2007-03, Vol.36 (2), p.253-270
Description:
A model is developed to characterize the vertically linked and concentrated nature of developed-country food markets. This model is then parameterized and used to simulate the effects of varying food market structures on the benefits to developing-country exporters of agricultural commodities from trade liberalization by developed countries. Results demonstrate that even relatively modest departures from perfect competition can cause much of the benefits from trade liberalization to flow to marketing firms instead of producers in the developing country. The distributional effects under downstream market power differ significantly from the perfectly competitive case and may result, somewhat paradoxically, in developing countries receiving a lower share of the total value added within the food chain as trade reform occurs.
Publisher:
Malden, USA: Blackwell Publishing Inc
Language:
English;Dutch
Identifier:
ISSN: 0169-5150
EISSN: 1574-0862
DOI: 10.1111/j.1574-0862.2007.00203.x
Source:
Alma/SFX Local Collection
RePEc
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