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Apple Export Competition between the United States and China in the Association of Southeast Asian Nations

Published online by Cambridge University Press:  12 June 2017

Jeff Luckstead ,
Stephen Devadoss  and
Ron C. Mittelhammer
Jeff Luckstead
Affiliation:
University of Arkansas, Fayetteville, Arkansas
Stephen Devadoss
Affiliation:
University of Idaho, Moscow, Idaho
Ron C. Mittelhammer
Affiliation:
Washington State University, Pullman, Washington
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Extract

We developed a trade model under imperfect competition to analyze the market power of U.S. and Chinese apple producers in the Association of Southeast Asian Nations (ASEAN) market and their domestic markets and the elimination of ASEAN tariffs on U.S. and Chinese apples. We also formulated welfare functions for the United States, China, and ASEAN. Comparative static results are derived to analyze the effect of tariff changes on exports, domestic sales, and welfare. Based on the theoretical model, we derived an econometric specification and used the new empirical industrial organization literature to estimate the market power of U.S. and Chinese apple producers. The econometric model is simulated to quantify the effect of tariff removal on exports and domestic sales.

Keywords

applesASEANimperfect competitionmarket powertrade policyF12F13L13
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 4 , November 2014 , pp. 635 - 647
Copyright
Copyright © Southern Agricultural Economics Association 2014

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