World Wheat Research Articles

Measuring the Degree of Market Power Exerted by Government Trade Agencies

AbstractThe principle of profit maximization is used to derive an equilibrium condition for noncompetitive markets and to provide explicit parametric tests for market power exerted in both domestic and foreign markets by a government trade agency. Our study goes beyond previous work by considering simultaneous exertion of market power in both domestic and foreign markets and by jointly estimating market power parameters with cost and demand parameters. These innovations allow nested tests of market power as opposed to prevailing nonnested tests based on simulation models or conditional tests based on prior estimates of demand and cost parameters. Japan is found to exert a high degree of monopsony power in the world wheat market and no monopoly power in the domestic market.

Market Structure, Quality and World Wheat Market

Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomieVolume 40, Issue 2 p. 311-328 Market Structure, Quality and World Wheat Market Bruno Larue, Bruno Larue Assistant professor, De'partement d ‘Economie Rurale, Universite’ Laval, Quebec City, QuebecSearch for more papers by this authorHarvey E. Lapan, Harvey E. Lapan Professor, Department of Economics, Iowa State University, Ames, IowaSearch for more papers by this author Bruno Larue, Bruno Larue Assistant professor, De'partement d ‘Economie Rurale, Universite’ Laval, Quebec City, QuebecSearch for more papers by this authorHarvey E. Lapan, Harvey E. Lapan Professor, Department of Economics, Iowa State University, Ames, IowaSearch for more papers by this author First published: July 1992 https://doi.org/10.1111/j.1744-7976.1992.tb03696.xCitations: 10AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Citing Literature Volume40, Issue2July 1992Pages 311-328 RelatedInformation

The Social Bases of Technical Change: Mechanization of the Wheatlands of Argentina and Canada, 1890 to 1914

In the late nineteenth and early twentieth centuries, Argentina and Canada experienced unprecedented economic growth. In the period stretching from 1890 to 1914, Argentina and Canada played host to millions of migrating Europeans and became the largest borrowers on the world's capital markets. The infusion of foreign labour and capital helped to convert the empty grasslands into bread baskets for the world.The expansion was propelled by crops in the export sector, mainly cereals cultivated on the Argentine pampas and the Canadian prairies. By the early years of this century, wheat became the premier export for both countries, and eventually ranked among the world's top cereal exporters. After World War I, both countries combined to supply around 60 percent of the world's total wheat export trade.1 Argentina and Canada exemplified what was beneficial about export-led development.

Determinants of World Wheat Trade Flows and Policy Analysis

The conventional gravity model is revised for a single commodity and applied to wheat markets to determine factors affecting trade flows of wheat. This study demonstrates the gravity model can be parameterized more effectively by using time series and cross‐section data rather than cross‐section data alone.The study reveals that all independent variables, including production capacities, income, import and export unit value indexes, and trade policies used in wheat trade play an important role in determining trade flows of wheat. Long‐term agreements achieve highest performance toward enhancing international wheat trade. Credit sales also contribute to increased wheat movements. The U.S. Export Enhancement Program and the EC Export Refund program are less effective in stimulating the world wheat trade. On the import side, protectionist policies of supporting domestic prices greatly impair wheat trade.Le modèle gravitationnel classique, adapté ici à un produit particulier, est utilisé pour cerner les facteurs influant sur les courants d'échanges internationaux du blé. L'étude démontre que le modèle de gravité peut être paramètrisé plus efficacement si on utilise à la fois les séries chronologiques et les données transversales, plutôt que ces dernières seulement.L'étude révèle que toutes les variables indépendantes, y compris les moyens de production, le revenu, les indices de valeur unitaire des importations et des exportations et les politiques d'échanges extérieurs ont une action déterminante sur les courants d'échanges internationaux du blé. Les accords à long terme sont les facteurs qui contribuent le plus à stimuler les échanges internationaux. Les ventes à crédit ont également un effet stimulant. Le programme américain de subvention aux exportations et le programme de restitution a l'exportation de la CE sont moins efficaces à cet égard. Côté importation, les politiques protectionnistes de soutien des prix intérieurs sont une grave entrave au commerce du blé.

The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market: Reply

The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market: Reply

The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market: Comment

The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market: Comment

Variability in wheat export demand elasticity: policy implications

Agricultural economists and policy makers in the United States believe that the magnitude of the export demand elasticity is one of the most important parameters used in farm policy decisions. However, past empirical estimates show wide variation in the size of the U.S. export demand elasticity. Reasons for this wide variation go beyond differences in model specification, estimation methods, and period of estimation to involve factors such as trade policies and changes in the supply and demand conditions of foreign countries. In view of the continual variation in magnitude, the elasticity of export demand should be viewed as a variable rather than as a parameter. In this study, U.S. wheat export demand elasticities are computed using a world wheat trade model. The estimates show that the elasticities vary significantly over time. They also reveal that elimination of trade barriers would more than double wheat export demand elasticities.

Variability in wheat export demand elasticity: Policy implications

ABSTRACTAgricultural economists and policy makers in the United States believe that the magnitude of the export demand elasticity is one of the most important parameters used in farm policy decisions. However, past empirical estimates show wide variation in the size of the U.S. export demand elasticity. Reasons for this wide variation go beyond differences in model specification, estimation methods, and period of estimation to involve factors such as trade policies and changes in the supply and demand conditions of foreign countries. In view of the continual variation in magnitude, the elasticity of export demand should be viewed as a variable rather than as a parameter. In this study, U.S. wheat export demand elasticities are computed using a world wheat trade model. The estimates show that the elasticities vary significantly over time. They also reveal that elimination of trade barriers would more than double wheat export demand elasticities.

The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market

The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market

A Dynamic Assessment of the Wheat Export Enhancement Program

AbstractA major goal of the Export Enhancement Program (EEP) was to expand U.S. exports. This objective was empirically tested in this study for the case of wheat. An analytical approach, reflecting the impact of the EEP on global wheat trade, was developed and incorporated within a nonspatial equilibrium model of world wheat trade. The results suggest that the EEP expanded U.S. wheat exports 20 percent in 1986/87, but only 7 percent in 1987/88. Most of the actual expansion occurred in 1987/88 and was due to other factors.

A Policy Analysis of China's Wheat Economy

AbstractThis paper examines the impacts of China's historical and anticipated future reforms on its domestic wheat economy and how it affects the import demand for wheat using a stochastic coefficient regression method. The results strongly support the hypothesis that producers and consumers in the post‐reform era were responsive to a less controlled economy. Furthermore, the higher import forecasts indicate that China will interact more with the world wheat market.

A Simulation Model of the U.S. Export Enhancement Program for Wheat

AbstractNash bargaining game models representing negotiations of Export Enhancement Program (EEP) sales are combined with a quarterly spatial price equilibrium model representing non‐EEP world wheat trade to simulate the EEP's impact in late 1985 and early 1986. The benefits of the EEP in terms of increased U.S. export revenues adjusted for subsidy costs are estimated to be less than one percent of total U.S. revenues. For the first quarter of 1986, model simulations also show a lowering of the CCC loan rate to have a much greater potential for increasing U.S. wheat exports than the EEP as operated.

Third World Debt and Wheat Imports: An Analysis for Selected Countries

Third World Debt and Wheat Imports: An Analysis for Selected Countries

Strategic trade policy with competitive storage

Where international commodity markets are characterized by the use of market power and lags in production or policy responses, dynamic games provide a useful means of analyzing the conflict. A deterministic, dynamic game model with storage is developed in which each country sets a trade tax and carries stocks so as to maximize a quadratic objective function subject to linear intertemporal constraints. An iterative optimal control procedure is used to account for the independence between each countries' policies. The analysis is applied to a four-sector world wheat model. The results illustrate the role of stocks as a strategic variable in a deterministic environment. Copyright 1990 by Oxford University Press.

IMPORTER LOYALTY IN THE INTERNATIONAL WHEAT MARKET

Important political and institutional relationships exist between most grain‐trading partners. In many cases the purpose of these relationships is to enhance importer loyalty to a particular exporter. This paper tests for loyalty in the world wheat market. Loyalty is measured by repeat purchases. An application of the Markov model is used to analyse loyalty and to explain international trade flows in wheat. Results show that in general the United States has relatively strong import loyalty compared to the other exporters such as Canada and the European Community.

Gains From Trade Liberalization in the World Wheat Market

Gains From Trade Liberalization in the World Wheat Market

A simulation model of the US export enhancement program for wheat in the presence of an EC response

A quarterly spatial price equilibrium model of world wheat trade combined with Nash bargaining game models is employed to examine the effects of targeting European Community export markets under the United States' Export Enhancement Program. An EC response protecting the volume of EC wheat exports for the quarter January to March 1986 is shown to lead to export revenues for both the United States and the European Community slightly below those obtained in the absence of the European Enhancement Program. Copyright 1989 by Oxford University Press.

Domestic Farm Policy and the Gains from Trade: Comment

Schmitz, Sigurdson, and Doering (SSD) argue that domestic and trade policies can lead to negative gains from trade. They derive the no-gains from trade position when the importing country restricts trade and the exporter seeks to maintain its volume of exports by subsidizing production. They extend their results to the case where the exporter imposes production subsidies, a price support, and a setaside program. SSD analyze the world wheat market and argue that current programs in wheatexporting countries may cause negative gains from trade.

Imperial collaboration and great depression: Britain, Canada and the world wheat crisis, 1929–35

(1988). Imperial collaboration and great depression: Britain, Canada and the world wheat crisis, 1929–35. The Journal of Imperial and Commonwealth History: Vol. 16, Theory and Practice in the History of European Expansion Overseas: Essays in Honour of Roland Robinson, pp. 107-127.

An examination of market share determination in the world wheat market with special reference to the effects of currency exchange rate fluctuations

An examination of market share determination in the world wheat market with special reference to the effects of currency exchange rate fluctuations