Russian Market Power in International Wheat Exports: Evidence from a Residual Demand Elasticity Analysis

Uhl, Kerstin Marit; Perekhozhuk, Oleksandr; Glauben, Thomas

doi:10.1515/jafio-2016-0026

Cited by 5 publications

(1 citation statement)

References 15 publications

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“…Russia and Kazakhstan are among the world's largest producers and exporters of wheat, thus, these two countries have a significant impact on global food security. Russia has become the largest wheat exporter in the world, accounting for 20% of wheat exports worldwide (2018/19), with wheat exports primarily directed to North Africa and the Near East (especially Egypt and Turkey) Uhl, Perekhozhuk, and Glauben, 2019). Kazakhstan accounts for about 5% of world exports.…”

Section: Introductionmentioning

confidence: 99%

Agricultural Policies and Technical Efficiency of Wheat Production in Kazakhstan and Russia: Evidence from a Stochastic Frontier Approach

Tleubayev

Bobojonov

Götz

2022

J. Agric. Appl. Econ.

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We utilize a unique primary data set of farms in Russia and Kazakhstan to investigate the link between policy reforms and technical efficiency. These countries have heavily subsidized their domestic agricultural production over the last decade, with a total of around USD 76 billion USD and USD 11.5 billion USD in government funding directed towards the agricultural sectors in Russia and Kazakhstan, respectively. Results of a stochastic frontier analysis make evident that variable inputs, such as fertilizer, have a relatively large influence on wheat production compared to land. Nearly every fifth farm has a technical efficiency level lower than 60%, suggesting significant unrealized production potential. While our analysis shows a negative relation between subsidies and efficiency, other factors, such as farmer’s education, cooperative and agroholding membership, and participation in insurance programs, are positively related to farm efficiency. The results imply that the governments and policymakers could mobilize the unutilized wheat production potential by improving the farmer education system, fostering cooperation among farms, and developing functioning farm insurance schemes.

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Section: Introductionmentioning

confidence: 99%

Agricultural Policies and Technical Efficiency of Wheat Production in Kazakhstan and Russia: Evidence from a Stochastic Frontier Approach

Tleubayev

Bobojonov

Götz

2022

J. Agric. Appl. Econ.

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Market Power Analysis on Shrimp Import from Tropical Asia: The Korean Case

Kim

Lim

2023

Innovation-Driven Business and Sustainability in the Tropics

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The Oligopolistic Behavior of Kazakh and Russian Wheat Exporters in the South Caucasus: Evidence from a Residual Demand Elasticity Analysis

2023

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This study looks at whether Kazakh and Russian wheat exporters leverage their dominant share of the wheat markets in the South Caucasus to exercise market power. We apply a three-stage estimation for systems of simultaneous equations and Zellner’s seemingly unrelated regression to analyze residual demand elasticity. The results of both estimations provide empirical evidence of Russian market power in the wheat markets of the South Caucasus but no evidence of a Kazakh oligopoly. Russian exporters possess greater market power in Armenia than in Georgia. Market power depends on the presence of competitors in the destination market. The results show that Kazakh exporters restrict the market powers of Russian exporters in the Azerbaijani wheat market, while Russian exporters constrain the market power of Kazakh exporters in the Azerbaijani and Georgian wheat markets. Ukrainian wheat exporters are able to intervene in the market powers of Russian exporters in Azerbaijan and Georgia, while they restrict Kazakh oligopoly in the Georgian market. Some export restrictions imposed by wheat exporting countries significantly affected competition in wheat importing countries. Russia’s ongoing war against Ukraine and the blockade of Ukrainian ports on the Sea of Azov and the Black Sea are restricting wheat trade, severely damaging Ukraine’s competitiveness and export potential, and reducing food security in the South Caucasus, the Middle East, and North Africa.

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Russian Market Power in International Wheat Exports: Evidence from a Residual Demand Elasticity Analysis

Cited by 5 publications

References 15 publications

Agricultural Policies and Technical Efficiency of Wheat Production in Kazakhstan and Russia: Evidence from a Stochastic Frontier Approach

Agricultural Policies and Technical Efficiency of Wheat Production in Kazakhstan and Russia: Evidence from a Stochastic Frontier Approach

Market Power Analysis on Shrimp Import from Tropical Asia: The Korean Case

The Oligopolistic Behavior of Kazakh and Russian Wheat Exporters in the South Caucasus: Evidence from a Residual Demand Elasticity Analysis

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