Abstract

North Africa has firmly established itself as a leading world region in terms of wheat imports. While domestic production remains limited due to natural and climate factors, domestic demand for wheat keeps growing due to fast population growth. That makes the region an attractive grain market, and forces largest exporters to use the whole range of price and nonprice instruments in the competition for the desired market niche. Russian wheat is the most competitive in terms of price. However, as this study shows, in the target region, it is nonprice factors that have a key influence on the decision to conclude a foreign trade contract. In this regard, the purpose of this paper is to reveal, using a panel data model, significant nonprice factors that affect the distribution of market shares of the main suppliers of wheat to the North African market. Taking these factors into consideration will allow underrepresented exporters to increase supplies and secure a niche that fully meets their export potential.

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