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Noncompetitive Pricing And Exchange Rate Pass-Through In Selected U.S. And Thai Rice Markets

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  • Yumkella, Kandeh K.
  • Unnevehr, Laurian J.
  • Garcia, Philip

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.

Suggested Citation

  • Yumkella, Kandeh K. & Unnevehr, Laurian J. & Garcia, Philip, 1994. "Noncompetitive Pricing And Exchange Rate Pass-Through In Selected U.S. And Thai Rice Markets," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-11, December.
    • Handle: RePEc:ags:joaaec:15183
    DOI: 10.22004/ag.econ.15183
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    References listed on IDEAS

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    1. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, vol. 79(1), pages 198-210, March.
    2. Rastegari-Henneberry, Shida, 1985. "The World Rice Market," Information Series 263862, University of California, Davis, Giannini Foundation.
    3. McNitt, Harold A., 1983. "The EC Market for U.S. Agricultural Exports: A Share Analysis," Foreign Agricultural Economic Report (FAER) 147201, United States Department of Agriculture, Economic Research Service.
    4. Sven W. Arndt & J. David Richardson, 1987. "Real-Financial Linkages Among Open Economies," NBER Working Papers 2230, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Paper Series 498, University of Wisconsin, Agricultural and Applied Economics.
    2. Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2015. "Price Discrimination And Pricing-To-Market Behavior Of Black Sea Region Wheat Exporters," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(3), pages 287-316, August.
    3. Mahanaseth Itthipong & Tauer Loren W., 2014. "Thailand’s Market Power in Its Rice Export Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 12(1), pages 109-120, January.
    4. Swift, Robyn, 2004. "The pass-through of exchange rate changes to the prices of Australian exports of dairy and livestock products," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 1-27.
    5. Earl L. Taylor & David A. Bessler & Mark L. Waller & M. Edward Rister, 1996. "Dynamic relationships between US and Thai rice prices," Agricultural Economics, International Association of Agricultural Economists, vol. 14(2), pages 123-133, July.
    6. Rakotoarisoa, Manitra A. & Shapouri, Shahla, 2001. "Market power and the pricing of commodities imported from developing countries: the case of US vanilla bean imports," Agricultural Economics, Blackwell, vol. 25(2-3), pages 285-294, September.
    7. Farajzadeh, Z. & Amiraslany, A., 2018. "Examination of the international market power for Iranian pistachios," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277345, International Association of Agricultural Economists.
    8. Griffith, Garry R. & Mullen, John D., 2001. "Pricing-to-market in NSW rice export markets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), pages 1-12.
    9. Risti Permani, 2021. "FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 192-221, January.
    10. Akash Issar & Poornima Varma, 2016. "Are Indian rice exporters able to price discriminate? Empirical evidence for basmati and non-basmati rice," Applied Economics, Taylor & Francis Journals, vol. 48(60), pages 5897-5908, December.
    11. Chen, Kevin & Hui, Jianguo & Chen, Peter, 1997. "Does China Discriminate Among Origins in the Pricing of its Wheat Imports?," 1997 Conference, August 10-16, 1997, Sacramento, California 197067, International Association of Agricultural Economists.
    12. Fedoseeva, Svetlana, 2013. "Do German exporters PTM? Searching for right answers in sugar confectionery exports," Discussion Papers 62, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    13. Poornima Varma & Akash Issar, 2016. "Pricing to market behaviour of India's high value agri-food exporters: an empirical analysis of major destination markets," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 129-137, January.
    14. Reimer Jeffrey J & Stiegert Kyle, 2006. "Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-27, September.
    15. Robyn Swift, 2004. "The pass‐through of exchange rate changes to the prices of Australian exports of dairy and livestock products," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 159-185, March.
    16. Reimer, Jeffrey J. & Steigert, Kyle W., 2006. "Imperfect Competition and Strategic Trade Theory: What Have We Learned?," Working Papers 201528, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.

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