IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v37y2005i17p1967-1978.html
   My bibliography  Save this article

Effects of income growth and tariffs on the world salmon market

Author

Listed:
  • Henry Kinnucan
  • Øystein Myrland

Abstract

The effects of income growth and tariffs on salmon prices, production, and trade flows are analysed using total elasticities derived from an equilibrium displacement model of the world salmon market. Results suggest the total income elasticity in world trade for salmon is about one, which means imports worldwide will grow at about the same pace as world income. However, owing in part to policies that restrict supply response, not all exporters will share evenly in this growth, with UK producers benefiting the most and Norwegian producers the least. Within importing countries, imports are more responsive to income growth than is domestic production, which means protectionist pressures are apt to increase with affluence. US tariffs on imports from Norway and Chile are counterproductive in that they reduce world imports with little effect on the US price. Norway's feed quota reduces the efficacy of US tariffs, makes imports less responsive to income, and increases price volatility. Hence, quota elimination may yield producer benefits in excess of producer losses associated with a lower world price.

Suggested Citation

  • Henry Kinnucan & Øystein Myrland, 2005. "Effects of income growth and tariffs on the world salmon market," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1967-1978.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1967-1978
    DOI: 10.1080/00036840500217523
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217523
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840500217523?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Grossman, Gene M, 1982. "Import Competition from Developed and Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 64(2), pages 271-281, May.
    2. Mark L. Herrmann & Ron C. Mittelhammer & Biing-Hwan Lin, 1993. "Import Demands for Norwegian Farmed Atlantic Salmon and Wild Pacific Salmon in North America, Japan and the EC," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(1), pages 111-125, March.
    3. George C. Davis & Maria Cristina Espinoza, 1998. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 868-879.
    4. Kinnucan, Henry W & Myrland, Oystein, 2000. "Optimal Advertising Levies with Application to the Norway-EU Salmon Agreement," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(1), pages 39-57, March.
    5. Frank Asche, 2001. "Testing the effect of an anti-dumping duty: The US salmon market," Empirical Economics, Springer, vol. 26(2), pages 343-355.
    6. Maury E. Bredahl & William H. Meyers & Keith J. Collins, 1979. "The Elasticity of Foreign Demand for U.S. Agricultural Products: The Importance of the Price Transmission Elasticity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 58-63.
    7. Marquez, Jaime, 1990. "Bilateral Trade Elasticities," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 70-77, February.
    8. I. F. Pearce, 1952. "Total Demand Curves and General Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 20(3), pages 216-227.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rausser, Gordon C. & Hamilton, Stephen F & Kovach, Marty & Stifter, Ryan, 2008. "Unintended Consequences: The Spillover Effects of Common Property Regulations," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt74p3h0f5, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Rausser, Gordon & Hamilton, Stephen & Kovach, Marty & Stifter, Ryan, 2009. "Unintended consequences: The spillover effects of common property regulations," Marine Policy, Elsevier, vol. 33(1), pages 24-39, January.
    3. Agyekum, Michael & Jolly, Curtis M., 2017. "Peanut trade and aflatoxin standards in Europe: Economic effects on trading countries," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 114-128.
    4. Nguyen, Ly & Kinnucan, Henry W., 2019. "The US solar panel anti-dumping duties versus uniform tariff," Energy Policy, Elsevier, vol. 127(C), pages 523-532.
    5. Zhang, Xufang & Sun, Changyou & Munn, Ian A. & Gordon, Jason, 2021. "How to protect the U.S. forest products industry from the perspective of trade? A comparison of policies within the forest supply chain," Forest Policy and Economics, Elsevier, vol. 133(C).
    6. Zhang, Xufang & Haviarova, Eva & Zhou, Mo, 2020. "A welfare analysis of China's tariffs on U.S. hardwood products," Forest Policy and Economics, Elsevier, vol. 113(C).
    7. Ozcan Ozturk, 2018. "Effects of Price Transmission and Exchange Rate Elasticities of Three Developing Countries on the World Cotton Trade," Applied Economics and Finance, Redfame publishing, vol. 5(1), pages 91-101, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henry W. Kinnucan & Øystein Myrland, 2002. "The Relative Impact of the Norway‐EU Salmon Agreement: a Mid‐term Assessment," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 195-219, July.
    2. Frank Asche & Shabbar Jaffry & Jessica Hartmann, 2007. "Price transmission and market integration: vertical and horizontal price linkages for salmon," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2535-2545.
    3. Chanjin Chung & Youg Sook Eom & Byung Woo Yang, 2014. "Optimal Generic Advertising under Bilateral Imperfect Competition between Processors and Retailers," Agribusiness, John Wiley & Sons, Ltd., vol. 30(4), pages 438-455, September.
    4. Frank Asche & Atle G. Guttormsen & Tom Sebulonsen & Elin H. Sissener, 2005. "Competition between farmed and wild salmon: the Japanese salmon market," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 333-340, November.
    5. Mohsen Bahmani-Oskooee & Taggert Brooks, 2003. "A new criteria for selecting the optimum lags in Johansen's cointegration technique," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 875-880.
    6. Frank Asche, 2001. "Testing the effect of an anti-dumping duty: The US salmon market," Empirical Economics, Springer, vol. 26(2), pages 343-355.
    7. Eric Tollens, 2004. "Biodiversity versus transgenic sugar beet: the one euro question," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(1), pages 1-18, March.
    8. Nygaard, Rune & Roll, Kristin H., 2024. "Cross-hedging wild salmon prices," Journal of Commodity Markets, Elsevier, vol. 33(C).
    9. Nunez, Hector M. & Onal, Hayri & Khanna, Madhu, 2012. "A prospective analysis of Brazilian biofuel economy: land use and infrastructure development," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126811, International Association of Agricultural Economists.
    10. Peter Wierts & Henk Van Kerkhoff & Jakob De Haan, 2014. "Composition of Exports and Export Performance of Eurozone Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 52(4), pages 928-941, July.
    11. Henry W. Kinnucan & Øystein Myrland, 2003. "Free-rider effects of generic advertising: The case of salmon," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 315-324.
    12. Q. Farooq Akram, 2004. "Oil wealth and real exchange rates: The FEER for Norway," Working Paper 2004/16, Norges Bank.
    13. Falck-Zepeda, Jose & Horna, Daniela & Smale, Melinda, 2007. "The economic impact and the distribution of benefits and risk from the adoption of insect resistant (Bt) cotton in West Africa," IFPRI discussion papers 718, International Food Policy Research Institute (IFPRI).
    14. Zhang, Xufang & Sun, Changyou & Munn, Ian A. & Gordon, Jason, 2021. "How to protect the U.S. forest products industry from the perspective of trade? A comparison of policies within the forest supply chain," Forest Policy and Economics, Elsevier, vol. 133(C).
    15. Wanissa Suanin, 2021. "Demand Elasticity of Processed Food Exports from Developing Countries: A Panel Analysis of US Imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 413-429, June.
    16. Han Dorussen, 2006. "Heterogeneous Trade Interests and Conflict," Journal of Conflict Resolution, Peace Science Society (International), vol. 50(1), pages 87-107, February.
    17. Williams, Gary W. & Shumway, C. Richard & Love, H. Alan, 2002. "Returns to Soybean Producers from Investments in Promotion and Research," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), pages 1-15, April.
    18. Olper, Alessandro & Pacca, Lucia & Curzi, Daniele, 2014. "Trade, import competition and productivity growth in the food industry," Food Policy, Elsevier, vol. 49(P1), pages 71-83.
    19. Rodolfo Cermeño & Bjamin S. Jensen & Huver Rivera, 2010. "Trade Flows and Volatility of Their Fundamentals: Some Evidence from Mexico," Working Papers DTE 496, CIDE, División de Economía.
    20. Takeshima, Hiroyuki, 2009. "Sensitivity of welfare effects estimated by equilibrium displacement model: a biological productivity growth for semi-subsistence crop in Sub-Sahara African market with high transactions costs," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49287, Agricultural and Applied Economics Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1967-1978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.