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Price, Quality, and International Agricultural Trade

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  • Woods, Darian

Abstract

The average value of a particular class of agricultural exports varies widely across different destinations. In the event of a supply shock, such as the implementation of the Emissions Trading Scheme, can farmers offset higher costs by raising their average prices by contracting exports to lower value destinations? If the difference in value reflects different prices because producers have market power, the answer will be ―yes‖. If the difference in value reflects differences in the quality of goods exported to different destinations, the answer is ―no.‖ While not definitive, there is little support for the hypothesis that exports are curtailed.

Suggested Citation

  • Woods, Darian, 2012. "Price, Quality, and International Agricultural Trade," 2012 Conference, August 31, 2012, Nelson, New Zealand 136073, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar12:136073
    DOI: 10.22004/ag.econ.136073
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    File URL: https://ageconsearch.umn.edu/record/136073/files/Woods%202012%20complete.pdf
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    References listed on IDEAS

    as
    1. Robert C. Feenstra, 1988. "Quality Change Under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 131-146.
    2. Aiginger, Karl, 1997. "The Use of Unit Values to Discriminate between Price and Quality Competition," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(5), pages 571-592, September.
    3. Peter K. Schott, 2004. "Across-Product Versus Within-Product Specialization in International Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 647-678.
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    Cited by:

    1. Allan, Corey & Kerr, Suzi, 2013. "Examining Patterns in and Drivers of Rural Land Values," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160191, New Zealand Agricultural and Resource Economics Society.
    2. Levente Timar, 2016. "Does money grow on trees? Mitigation under climate policy in a heterogeneous sheep-beef sector," Working Papers 16_09, Motu Economic and Public Policy Research.
    3. Grimes, Arthur & Hyland, Sean, 2012. "Passing the Buck: Impacts of Commodity Price Shocks on Rural Outcomes," 2012 Conference, August 31, 2012, Nelson, New Zealand 136046, New Zealand Agricultural and Resource Economics Society.

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    More about this item

    Keywords

    Agribusiness; Demand and Price Analysis; International Relations/Trade; Production Economics;
    All these keywords.

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