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Globalization and Food Industry Consolidation : What Does Industrial Organization Have to Say About Market Access ?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Mccorriston, Steve |
| Copyright Year | 2003 |
| Abstract | This paper focuses on the interface between the industrial organization of the food sector in developed countries and the issue of market access for developing countries. Noting that the food sector in devel oped countries can be characterized as a successive oligopoly, we explore the issue of market access where some developing countries can export high-value processed goods and others export raw agricultura l commodities. Tariffs apply on the imports of both these goods such that we have the possibility of ariff escalation, an issue often highlighted by trade and development economists as a barrier to developing countries wishing to up-grade their export profile. We outline in the paper a theoretical framework in which we explore aspects of market access when the domestic food sector is successively oligopolistic. Employing a market access rule that market access concessions should not be discriminatory, we show that reducing tariffs on each of these goods by equiva lent amounts will result in biased market access. Conversely, if market access conc essions between developing countri es are to be neutral, tariff reductions should be differential a nd tariff escalation should increase. This is in contrast to traditional views on the tariff escalation issue but arises due to the feedback effects tariff reductions at different stages of the marketing ch ain have in this vertically related set-up. The overall implication of the paper is that to provide appropriate analysis on traditional policy issues, researchers should take into account the industrial organization of the markets on which they focus. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://aae.wisc.edu/fsrg/publications/conference/McCorr_Sheldon.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
