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Pass-Through Elasticity, Substitution and Market Share: the Case for Sheep Meat Exports

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  • Minsoo Lee
  • Moonjoong Tcha

Abstract

This paper empirically examines the exchange rate pass-through elasticity, using sheep meat exports from the two major exporters, Australia and New Zealand. The results show the coexistence of incomplete and complete pass-through in the international sheep meat industry. The Australian sheep meat exporters have a relatively smaller market share than New Zealand and are not able to exercise monopoly power. New Zealand producers, on the other hand, can increase their mark-ups in those destination countries where they have a large market share.

Suggested Citation

  • Minsoo Lee & Moonjoong Tcha, 2005. "Pass-Through Elasticity, Substitution and Market Share: the Case for Sheep Meat Exports," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(2), pages 209-228.
    • Handle: RePEc:taf:jitecd:v:14:y:2005:i:2:p:209-228
    DOI: 10.1080/09638190500093380
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    Cited by:

    1. Tantirigama, Mangalika & Lee, Minsoo & Sanyal, Amal, 2008. "New Zealand's Pastoral Exports: Can Small Countries Practise Pricing-to-Market?," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 4(1-2), pages 1-15.

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