THE INFLUENCE OF MARKET STRUCTURE ON THE IMPACTS OF DOMESTIC SUBSIDIES ON INTERNATIONAL COTTON MAREKTS Report as inadecuate




THE INFLUENCE OF MARKET STRUCTURE ON THE IMPACTS OF DOMESTIC SUBSIDIES ON INTERNATIONAL COTTON MAREKTS - Download this document for free, or read online. Document in PDF available to download.

This analysis uses a residual demand elasticity model to measure market power of the international cotton market. The results indicate that both china and U.S. dominate the cotton price with a higher market power in china compared to the U.S. Those test results combined with a partial equilibrium model of the international cotton market are used to study the welfare consequences of U.S. cotton subsidy policies for major cotton exporters under alternative assumptions about global market structure. The results indicate that the effects of U.S. subsidies on world cotton price are much smaller under monopsony and double power (with china as a monopsony and U.S. as a monopoly) market assumption than those under complete competitive market scenarios.

Keywords: U.S. Cotton Commodity Programs ; Global Market Structure ; International Trade

Subject(s): Agricultural and Food Policy

International Relations/Trade

Issue Date: 2009

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/51196

Total Pages: 21

Series Statement: Contributed Paper

722

Record appears in: International Association of Agricultural Economists (IAAE) > 2009 Conference, August 16-22, 2009, Beijing, China





Author: Pan, Suwen ; Hudson, Darren ; Ethridge, Don E.

Source: http://ageconsearch.umn.edu/record/51196?ln=en







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