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Factor and Product Market Tradability and Equilibrium in Pacific Rim Pork Industries

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  • Barrett, Christopher B.
  • Li, Jau-Rong
  • Bailey, DeeVon

Abstract

This paper uses a new market analysis methodology to examine price and trade relationships in eight Pacific Rim factor and product markets central to the Canadian and U.S. pork industries. The new method enables direct estimation of the frequency with which a variety of market conditions occur, including competitive equilibrium, tradability, and segmented equilibrium. While extraordinary profit opportunities emerge episodically in a few niche markets, the vast majority of the markets studied are highly competitive -exhibiting zero marginal profits to spatial arbitrage at monthly frequency -and internationally contestable. In spite of continued high international transfer costs, the Pacific Rim is effectively a single market for pork producers and processors today.

Suggested Citation

  • Barrett, Christopher B. & Li, Jau-Rong & Bailey, DeeVon, 1999. "Factor and Product Market Tradability and Equilibrium in Pacific Rim Pork Industries," Working Papers 127696, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:127696
    DOI: 10.22004/ag.econ.127696
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    Cited by:

    1. Feng’ e Yang & Shashi Kant, 2008. "Rent Capture Analysis of Ontario’s Stumpage System Using an Enhanced Parity Bounds Model," Land Economics, University of Wisconsin Press, vol. 84(4), pages 667-688.
    2. Emmanuel Hache & Olivier Massol, 2016. "Sanctions against Iran: An assessment of their global impact through the lens of international methanol prices," Working Papers hal-02475557, HAL.
    3. Negassa, Asfaw & Myers, Robert & Gabre-Madhin, Eleni Z., 2004. "Grain marketing policy changes and spatial efficiency of maize and wheat markets in Ethiopia," MTID discussion papers 66, International Food Policy Research Institute (IFPRI).
    4. Dragan Miljkovic, 2009. "US and Canadian livestock prices: market integration and trade dependence," Applied Economics, Taylor & Francis Journals, vol. 41(2), pages 183-193.
    5. Liddell, Sterling & Bailey, DeeVon, 2001. "Market Opportunities And Threats To The U.S. Pork Industry Posed By Traceability Systems," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(3), pages 1-16.
    6. Padilla-Bernal, Luz E. & Thilmany, Dawn D. & Loureiro, Maria L., 2001. "Tradability And Market Equilibrium For U.S.-Mexico Fresh Tomatoes," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36142, Western Agricultural Economics Association.
    7. Mutambatsere, Emelly & Mabaya, Edward T. & Christy, Ralph D., 2006. "Integration and Equilibrium of Maize Markets in Southern Africa: A SADC Sub-regional Assessment," Working Papers 127056, Cornell University, Department of Applied Economics and Management.
    8. Liu, Lan & Yue, Chengyan, 2009. "Non-tariff Barriers to Trade Caused by SPS Measures and Customs Procedures with Product Quality Changes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-17, April.
    9. Padilla-Bernal, Luz E. & Thilmany, Dawn D. & Loureiro, Maria L., 2003. "An Empirical Analysis of Market Integration and Efficiency for U.S. Fresh Tomato Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-16, December.
    10. Emmanuel Hache & Olivier Massol, 2016. "Sanctions against Iran: An assessment of their global impact through the lens of international methanol prices," Working Papers hal-02475557, HAL.

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    Keywords

    Livestock Production/Industries; Marketing;

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