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Market Power and Commodity Prices: Brazil, Chile and the United States, 1820s-1930

Author

Listed:
  • Marcelo de Paiva Abreu

    (Department of Economics PUC-Rio)

  • Felipe Tamega Fernandes

Abstract

The paper focuses on market power by certain countries in specific commodity markets as a crucial factor in explaining the level of protection. It is argued that a country which is a price maker in the world market of a specific commodity might affect its world price through export taxes, import taxes and commodity stockpiling. Standard reduced form equations were estimated to test if significant market shares in international markets of Brazilian coffee, Chilean saltpetre and US cotton implied domestic variables were relevant for the determination of the corresponding world commodity prices. Results suggest the producers succeeded in passing through increases in internal costs to the relevant world commodity price.

Suggested Citation

  • Marcelo de Paiva Abreu & Felipe Tamega Fernandes, 2005. "Market Power and Commodity Prices: Brazil, Chile and the United States, 1820s-1930," Textos para discussão 511, Department of Economics PUC-Rio (Brazil).
    • Handle: RePEc:rio:texdis:511
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    File URL: http://www.econ.puc-rio.br/uploads/adm/trabalhos/files/td511.pdf
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    References listed on IDEAS

    as
    1. Harley, C. Knick, 1992. "The antebellum American tariff: Food exports and manufacturing," Explorations in Economic History, Elsevier, vol. 29(4), pages 375-400, October.
    2. Juan Braun-Llona & Matías Braun-Llona & Ignacio Briones & José Díaz & Rolf Lüders & Gert Wagner, "undated". "Economía Chilena 1810-1995. Estadísticas Históricas," Documentos de Trabajo 187, Instituto de Economia. Pontificia Universidad Católica de Chile..
    3. Estevadeordal, Antoni, 1997. "Measuring protection in the early twentieth century," European Review of Economic History, Cambridge University Press, vol. 1(1), pages 89-125, April.
    4. James, John A, 1981. "The Optimal Tariff in the Antebellum United States," American Economic Review, American Economic Association, vol. 71(4), pages 726-734, September.
    5. Irwin, Douglas A., 2003. "The optimal tax on antebellum US cotton exports," Journal of International Economics, Elsevier, vol. 60(2), pages 275-291, August.
    6. O'Rourke, Kevin H, 2000. "Tariffs and Growth in the Late 19th Century," Economic Journal, Royal Economic Society, vol. 110(463), pages 456-483, April.
    7. De Paiva Abreu, Marcelo, 2004. "The Political Economy of High Protection in Brazil before 1987," IDB Publications (Working Papers) 2641, Inter-American Development Bank.
    8. José Díaz & Gert Wagner, 2004. "Política Comercial: Instrumentos y Antecedentes. Chile en los Siglos XIX y XX," Documentos de Trabajo 223, Instituto de Economia. Pontificia Universidad Católica de Chile..
    9. Marcelo de Paiva Abreu, 2004. "The Political Economy of High Protection in Brazil before 1987," IDB Publications (Working Papers) 9375, Inter-American Development Bank.
    10. Rolf Lüders & Gert Wagner, 2003. "Export Tariff, Welfare and Public Finance: Nitrates from 1880 to 1930," Documentos de Trabajo 241, Instituto de Economia. Pontificia Universidad Católica de Chile..
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. André Villela, 2011. "A Bird’s Eye View of Brazilian Industrialization," Chapters, in: Werner Baer & David Fleischer (ed.), The Economies of Argentina and Brazil, chapter 2, Edward Elgar Publishing.

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    More about this item

    JEL classification:

    • N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913
    • N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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