IDEAS home Printed from https://ideas.repec.org/p/ags/iaae06/25362.html
   My bibliography  Save this paper

Strategic Behavior and Trade in Agricultural Commodities - Competition in World Peanut Markets

Author

Listed:
  • Fletcher, Stanley M.
  • Nadolnyak, Denis A.

Abstract

In this paper, we make an attempt to rationalize the strategic behavior of major peanut exporting and importing countries in the framework of imperfectly competitive markets with the focus on the global and inter-American peanut trade. This study is motivated by the fact that liberalizing imperfectly competitive and often distorted markets can have unorthodox effects, in particular increase the incentives to overuse certain trade policies. The results suggest that the South American peanut producers stand to benefit from the reductions in the U.S. peanut production supports but, paradoxically, preservation of a tariff may still be mutually welfare enhancing. In the broader context of global peanut trade, multi-lateral tariff reduction increases the low-cost exporters' incentives to subsidize export production, which benefits the consumers but hurts the higher-cost producers.

Suggested Citation

  • Fletcher, Stanley M. & Nadolnyak, Denis A., 2006. "Strategic Behavior and Trade in Agricultural Commodities - Competition in World Peanut Markets," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25362, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25362
    DOI: 10.22004/ag.econ.25362
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25362/files/pp060644.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.25362?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
    ---><---

    References listed on IDEAS

    as
    1. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
    Full references (including those not matched with items on IDEAS)

    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. Fletcher, Stanley M. & Nadolnyak, Denis A., 2005. "Accommodating Imperfect Competition in A Model of World Peanut Trade," 2005 Annual meeting, July 24-27, Providence, RI 19460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Delpeuch, Claire & Vandeplas, Anneleen, 2013. "Revisiting the “Cotton Problem”—A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," World Development, Elsevier, vol. 42(C), pages 209-221.
    3. Olivier Blanchard & Michael Kremer, 1997. "Disorganization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1091-1126.
    4. Claire Delpeuch & Antoine Leblois, 2013. "Sub-Saharan African Cotton Policies in Retrospect," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 617-642, September.
    5. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
    6. Julie Wilk & Mattias Hjerpe & Wei Yang & Hua Fan, 2015. "Farm-scale adaptation under extreme climate and rapid economic transition," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(3), pages 393-407, June.
    7. Meilin Ma & Richard J. Sexton, 2021. "Modern agricultural value chains and the future of smallholder farming systems," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 591-606, July.
    8. Swinnen, Johan, ed. & McDermott, John, ed., 2020. "COVID-19 and global food security," IFPRI books, International Food Policy Research Institute (IFPRI), number 9780896293878, February.
    9. Deininger, Klaus & Goyal, Aparajita, 2012. "Going digital: Credit effects of land registry computerization in India," Journal of Development Economics, Elsevier, vol. 99(2), pages 236-243.
    10. Wolz, Axel & Fritzsch, Jana & Reinsberg, Klaus, 2005. "The Impact of Social Capital on Farm and Household Income: Results of a Survey among Individual Farmers in Poland," 94th Seminar, April 9-10, 2005, Ashford, UK 24442, European Association of Agricultural Economists.
    11. Müller, Daniel & Leitão, Pedro J. & Sikor, Thomas, 2013. "Comparing the determinants of cropland abandonment in Albania and Romania using boosted regression trees," Agricultural Systems, Elsevier, vol. 117(C), pages 66-77.
    12. Sebastian Galiani & Ernesto Schargrodsky, 2011. "Land Property Rights and Resource Allocation," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 329-345.
    13. Yohanes Boni, 2022. "Agricultural Development’s Influence on Rural Poverty Alleviation in the North Buton Regency, Indonesia—The Mediating Role of Farmer Performance," Economies, MDPI, vol. 10(10), pages 1-14, September.
    14. Delpeuch, Claire & Leblois, Antoine, 2014. "The Elusive Quest for Supply Response to Cash-Crop Market Reforms in Sub-Saharan Africa: The Case of Cotton," World Development, Elsevier, vol. 64(C), pages 521-537.
    15. repec:lic:licosd:37616 is not listed on IDEAS
    16. Csáki, Csaba & Jámbor, Attila, 2018. "Konvergencia vagy divergencia. Merre tart Kelet-Közép-Európa és a FÁK mezőgazdasága? [Convergence versus divergence: Where is agriculture in Central and Eastern Europe and the CIS countries heading," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1048-1066.
    17. Akramov, Kamiljon T. & Shreedhar, Ganga, 2012. "Economic development, external shocks, and food security in Tajikistan:," IFPRI discussion papers 1163, International Food Policy Research Institute (IFPRI).
    18. Xilong Jiang & Guanyi Yin & Yi Lou & Shuai Xie & Wei Wei, 2021. "The Impact of Transformation of Farmers’ Livelihood on the Increasing Labor Costs of Grain Plantation in China," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    19. Richard S.J. Tol & Gary W. Yohe, 2006. "The Weakest Link Hypothesis For Adaptive Capacity: An Empirical Test," Wesleyan Economics Working Papers 2006-005, Wesleyan University, Department of Economics.
    20. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    21. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.

    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:ags:iaae06:25362. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.