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Apple Export Competition between the United States and China in the Association of Southeast Asian Nations

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  • Luckstead, Jeff
  • Devadoss, Stephen
  • Mittelhammer, Ron C.

Abstract

We developed a trade model under imperfect competition to analyze the market power of U.S. and Chinese apple producers in the Association of Southeast Asian Nations (ASEAN) market and their domestic markets and the elimination of ASEAN tariffs on U.S. and Chinese apples. We also formulated welfare functions for the United States, China, and ASEAN. Comparative static results are derived to analyze the effect of tariff changes on exports, domestic sales, and welfare. Based on the theoretical model, we derived an econometric specification and used the new empirical industrial organization literature to estimate the market power of U.S. and Chinese apple producers. The econometric model is simulated to quantify the effect of tariff removal on exports and domestic sales.

Suggested Citation

  • Luckstead, Jeff & Devadoss, Stephen & Mittelhammer, Ron C., 2014. "Apple Export Competition between the United States and China in the Association of Southeast Asian Nations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 635-647, November.
    • Handle: RePEc:cup:jagaec:v:46:y:2014:i:04:p:635-647_02
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    References listed on IDEAS

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    1. Stephen Devadoss & Jeff Luckstead & Ron Mittelhammer, 2013. "Econometric issues related to identification of the market power parameter," Applied Economics, Taylor & Francis Journals, vol. 45(32), pages 4569-4574, November.
    2. Alven H.S. Lam, 2000. "Republic of China (Taiwan)," American Journal of Economics and Sociology, Wiley Blackwell, vol. 59(5), pages 327-336, November.
    3. Kim, C.S. & Schaible, Glenn & Daberkow, Stan, 2010. "The Relative Impacts of U.S. Bio-Fuel Policies on Fuel-Energy Markets: A Comparative Static Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(1), pages 121-132, February.
    4. MacDonald, James M. & Key, Nigel D., 2012. "Market Power in Poultry Production Contracting? Evidence from a Farm Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(4), pages 1-14, November.
    5. McCracken, Vicki A. & Tansuhaj, Patriya & O'Rourke, A. Desmond & Walter, Karol, 1991. "Strategies For U.S. Apple Exporting Firms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 22(2), pages 1-13, June.
    6. Zhang, Xiaoyong & Qiu, Huanguang & Huang, Zhurong, 2009. "Linking Small Scale Farmers in China with the International Markets: A Case of Apple Export Chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 12(3), pages 1-22, September.
    7. Aw, Bee Yan & Chung, Sukkyun & Roberts, Mark J, 2000. "Productivity and Turnover in the Export Market: Micro-level Evidence from the Republic of Korea and Taiwan (China)," The World Bank Economic Review, World Bank, vol. 14(1), pages 65-90, January.
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    Cited by:

    1. Sabala, Ethan & Devadoss, Stephen, 2021. "Analysis of Chinese Tariff on Sorghum Market under Varying Market Structures," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(01), January.
    2. Moritz Zanetti & Antonella Samoggia & Jennifer Young, 2020. "Fruit Sector Strategic Management: An Exploration of Agro-food Chain Actors’ Perception of Market Sustainability of Apple Innovation," Sustainability, MDPI, vol. 12(16), pages 1-28, August.

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