Hostname: page-component-586b7cd67f-vdxz6 Total loading time: 0 Render date: 2024-11-22T14:47:56.407Z Has data issue: false hasContentIssue false
  • English
  • Français

Noncompetitive Pricing and Exchange Rate Pass-Through in Selected U.S. and Thai Rice Markets

Published online by Cambridge University Press:  28 April 2015

K. K. Yumkella ,
L. J. Unnevehr  and
P. Garcia
K. K. Yumkella
Affiliation:
Michigan State University
L. J. Unnevehr
Affiliation:
Environmental and Health Risk Branch, Economic Research Service, USDA
P. Garcia
Affiliation:
University of Illinois at Urbana-Champaign
Get access Rights & Permissions [Opens in a new window]

Abstract

A “pricing to market” international trade model is applied to U.S. and Thai rice exports to high and middle income countries that are continuous rice importers. These markets are characterized by strong quality preferences and highly inelastic demand, and thus exporters may exercise market power. Evidence of noncompetitive pricing either through price discrimination across destinations or through imperfect exchange rate pass-through is found in this small but growing segment of the international rice trade.

Keywords

exchange ratesimperfect competitioninternational traderice
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 26 , Issue 2 , December 1994 , pp. 406 - 416
Copyright
Copyright © Southern Agricultural Economics Association 1994

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Barker, R. and Herdt, R. W.. The Rice Economy of Asia. Washington DC: Resources for the Future, 1985.Google Scholar
Baharumshah, A.The Malaysian Rice Policy: Welfare Analysis of Current and Alternative Programs. Unpublished Ph.D. Dissertation, University of Illinois at Urbana-Champaign, 1989.Google Scholar
Childs, N. “The Changing Role of the United States in the World Rice Market.” Rice Situation and Outlook Report, USDA/ERS, RS-55, July 1989.Google Scholar
Falcon, W. P. and Monke, E. A.. “International Trade in Rice.” Stanford Food Res. Inst. Stud. 17(1979-1980):279–304.Google Scholar
Judge, G. G., Griffiths, W. E., Hill, R. C., Lutkepohl, H., and Lee, T. C.. The Theory and Practice of Econometrics. 2nd ed, New York: John Wiley and Sons, 1985.Google Scholar
Kaosa-ard, M. and Juliane, B. “Assessing Quality Characteristics and Price of Rice in Selected International Markets,” Consumer Demand for Rice Grain Quality, Unnevehr, L.J., Duff, B., and Juliano, B., eds, Manila: International Rice Research Institute, 1992.Google Scholar
Karp, L. S. and Perloff, J. M.. “Dynamic Oligopoly in the Rice Export Market.” Rev. Econ. and Statist. 71, 3(August 1989):462–470.CrossRefGoogle Scholar
Kmenta, J.Elements of Econometrics. 2nd ed, New York: Macmillan Publishing Company, 1986.Google Scholar
Knetter, M. M. “Price Discrimination by U.S. and German Exporters.” Amer. Econ. Rev. 79(March 1989): 198–210.Google Scholar
Krugman, P. “Pricing to Market When the Exchange Rate Changes.” Real Financial Linkages Among Open Economies, Arndt, S. W. and Richardson, J. D., eds, Cambridge MA: MIT Press, 1987.Google Scholar
McNitt, H. A. “The EC Market for US Agricultural Exports: Share Analysis.” USDA/ERS, Foreign Agricultural Economic Report No. 179, March 1983.Google Scholar
Mitchell, D. O. and Duncan, R. C.. “Market Behavior of Grain Exporters.” Research Observer. 2(1987):3–20.CrossRefGoogle Scholar
Petzel, T. E. and Monke, E. A.. “The Integration of the International Rice Market.” Stanford Food Res. Inst. Stud. 17(1979-80):307–326.Google Scholar
Pick, D. H. and Park, T. A.. “The Competitive Structure of U.S. Agricultural Exports.” Amer. J. Agr. Eçon. 73( February 1991): 133–141.CrossRefGoogle Scholar
Rastegari-Henneberry, S.The World Rice Market. Giannini Foundation Information Series No. 85-2, 1985.Google Scholar
Siamwalla, A. and Haykin, S.. The World Rice Market: Structure. Conduct, and Performance.International Food Policy Research Institute, Research Report No. 39, 1983.Google Scholar
Uri, N. D. “Delineating the Nature and Extent of the Market for Agricultural Commodities.” Int. Trade J. 3, 2(1989):143–166.CrossRefGoogle Scholar
U.S. Department of Agriculture, Economic Research Service. “Effects of the Uruguay Round Agreement on U.S. Agricultural Commodities.” Staff Report, Washington DC, March 1994.Google Scholar
World Bank. World Development Report 1991. Oxford: Oxford University Press, 1991.Google Scholar
Yumkella, K.K.Imperfect Competition and Exchange Rate Pass-Through in the International Rice Market. Unpublished Ph.D. Dissertation, University of Illinois at Urbana-Champaign, 1992.Google Scholar