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Impact of the US–EC price war on major wheat exporters' shares of the Chinese market

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  • Fredoun Z. Ahmadi‐Esfahani
  • Paul H. Jensen

Abstract

China is both the world's largest producer and consumer of wheat. In an attempt to gain a larger slice of the important Chinese market, both the European Community and the United States have offered China subsidised wheat. In addition, other exporters have offered attractive credit arrangements to China. The objective of this paper is to measure the overall impact of these policies on each exporter's share of the Chinese market. To that end, an improved version of the constant market shares model is applied to data on Chinese wheat imports in the 1980's. The results indicate that the United States has been outperforming the other exporters since subsidised US wheat sales were authorised for China in 1987. The implications of the analysis for the smaller exporters and international wheat trade are discussed.

Suggested Citation

  • Fredoun Z. Ahmadi‐Esfahani & Paul H. Jensen, 1994. "Impact of the US–EC price war on major wheat exporters' shares of the Chinese market," Agricultural Economics, International Association of Agricultural Economists, vol. 10(1), pages 61-70, January.
    • Handle: RePEc:bla:agecon:v:10:y:1994:i:1:p:61-70
    DOI: 10.1111/j.1574-0862.1994.tb00289.x
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    Cited by:

    1. Ahmadi-Esfahani, Fredoun Z., 2006. "Constant market shares analysis: uses, limitations and prospects," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), pages 1-17, December.
    2. Ahmadi-Esfahani, Fredoun Z. & Anderson, Glenn Michael, 1999. "Constant Market Shares Analysis: Uses, Limitations and Prospects," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 122329, Australian Agricultural and Resource Economics Society.
    3. Liu, Yan & Shi, Xunpeng & Laurenceson, James, 2020. "Dynamics of Australia's LNG export performance: A modified constant market shares analysis," Energy Economics, Elsevier, vol. 89(C).
    4. Abdul Rehman & Luan Jingdong, 2017. "An econometric analysis of major Chinese food crops: An empirical study," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1323372-132, January.
    5. Chen, Kevin Z. & Duan, Yufeng, 2001. "Competitiveness Of Canadian Agri-Food Exports Against Competitors In Asia: 1980-97," Project Report Series 24042, University of Alberta, Department of Resource Economics and Environmental Sociology.

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