Implications of Game Theory for International Agricultural Trade

Abbott, Philip C.; Kallio, Panu

doi:10.2307/1243297

Cited by 15 publications

(10 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Recent studies have shown that this is a problematic assumption (Abbott and Kallio (1996), Pick and Carter (1994), and Veeman et al (1999). Much of the world grain trade controlled by five multinationals -including Cargill and Louis Dreyfus, international grain traders frequently 'price to market.'…”

Section: Trade Friction In the North American Market For Wheatmentioning

confidence: 99%

What Does the Future Hold for the Canadian Wheat Board? Trade Friction, Dispute Settlement and State Support for Agriculture in North America

Froese

2008

SSRN Journal

View full text Add to dashboard Cite

This paper examines the substance of the WTO panel decision for Canada-Wheat as it relates to the ongoing debate about the future of the Canadian Wheat Board. In this case, the WTO upheld the legality of Canada's marketing board for wheat and barley. The decision suggests that trade discipline may play less of a role in Canada's ongoing adjustment processes than other factors such as proximity to American markets and other competitive pressures that result from exposure to global markets. Furthermore, in aggregate terms, Canada and the US have been adjusting levels of support downwards over the past decade. What then is the future of the CWB? Dismantling the CWB may fit Canada's long-term industrial development pattern. However, in the immediate future the federal government must carefully consider the implications of removing programs that provide security for domestic producers -especially in light of aggressively protectionist sentiment in the American agriculture sector.

show abstract

Section: Trade Friction In the North American Market For Wheatmentioning

confidence: 99%

What Does the Future Hold for the Canadian Wheat Board? Trade Friction, Dispute Settlement and State Support for Agriculture in North America

Froese

2008

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…From a game theoretical viewpoint, these models are distinguished by the definition of the strategy space (prices or quantities) and by the information sets: whether one country knows the other's choice when it makes its move (Varian 1992). A number of interesting studies, which apply the tools of game theory in order to capture strategic interactions between players in the market, have been written (see for example, Karp and MacCalla 1983, Johnson et al 1993, Kennedy et al 1996, Abbott and Kallio 1996, Kallio 1998.…”

Section: Niemi J Cointegration and Error Correction Modelling Of Agmentioning

confidence: 99%

Cointegration and error correction modelling of agricultural commodity trade: The case of ASEAN agricultural exports to the EU

Niemi¹

2003

AFSci

View full text Add to dashboard Cite

The objecti e of this study is to increase our understanding of the specification and estimation of agricultural commodity trade models as well as to provide instruments for trade policy analysis. More specifically,the aim is to build a set of dynamic,theory-based econometric models which are able to capture both short-run and long-run effects of income and price changes,and which can be used for prediction and policy simulation under alternati e assumed conditions.A relati ely unrestricted,data determined,econometric modelling approach based on the error correction mechanism is used,in order to emphasise the importance of dynamics of trade functions.Econometric models are constructed for se en agricultural commodities cassa a,cocoa,coconut oil,palm oil,pepper, rubber,and tea exported from the Association of Southeast Asian Nations (ASEAN)to the European Union (EU).With the aim of providing broad commodity co erage,the intent is to explore whether the chosen modelling approach is able to catch the essentials of the behavioural relationships underlying the specialised nature of each commodity market. The import demand analysis of the study examines two key features:(1)the response of EU s agricultural commodity imports to income and price changes,and (2)the length of time required for this response to occur.The estimations of the export demand relationships provide tests whether the exporters market shares are influenced by the le el of relati e export price,and whether exports are affected by ariations in the rate of growth of imports.The export supply analysis examines the relati e influence of real price and some non-price factors in stimulating the supply of exports.The lag distribution (the shape and length of the lag)is found to be ery critical in export supply relationships,since the effects of price changes usually take a long time to work themselves through and since the transmission of the price effects can be complex.The set of dynamic econometric models estimated in the study are then used to simulate the effects different types of trade policies.More specifically,attempts are made to quantify the effects of a unilateral tariff remo al by the EU,an imposition of export subsidies and taxes by the ASEAN countries as well as exchange rate adjustments on ASEAN agricultural exports to the EU. The results suggest that concepts such as cointegration and error correction specification are well suited for the study of agricultural trade flows,which are typically non-stationary time series.The error correction specification is found to provide a good representation of the data-generating process for agricultural commodity flows from ASEAN countries to the EU.Furthermore,the study shows the importance of inspection of the time series properties and the examination of both short-and long-run adjustment when studying trade functions.The different dynamic responses are often critical to the outcomes of the types of trade policies considered.;

show abstract

“…Some studies have attempted to link trade theories to food and agriculture in recent times (Abbott and Kallio, 1996;Berkum and Meij, 2000;Josling et al, 2010;Pokriv ák, Ciaian and Kancs, 2011;Campi and Duenas, 2014), however, most of these studies concentrated mainly in processed food and agricultural products in the developed countries or regional trading blocs such as the United States of America (USA) and the European Union (EU). To the best of my knowledge, these studies have not given much attention to trade theories with reference to trade in raw agricultural products of Sub-Saharan Africa (SSA), thus the importance of this study.…”

mentioning

confidence: 99%