Trade diversion and high food prices - The impact of the Russian pig meat import ban

Ivan Djuric, Linde Götz () and Thomas Glauben

No 205330, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: In this paper we analyze the impact of the Russian ban on import of pig meat originating in the EU on the domestic pig meat price developments in Russia. We use a regime-switching price transmission model in order to identify possible changes in the long-run equilibrium between the pig meat prices of Russia and its main non-EU trading partners. Our results indicate the reduction of transaction costs in pig meat trade between Russia and its main non-EU trading partners, followed by the increase in transmission of price changes in the long-run. Though, our results indicate completely opposite results concerning domestic price relations between wholesale and end consumer pig meat prices in Russia. Overall, faced with the scarcity of pig meat on the domestic market, Russian consumers bear the biggest burden from the ban in the medium term by being faced with the significant increase in end consumer pig meat prices.

Keywords: Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Food Security and Poverty; International Relations/Trade (search for similar items in EconPapers)
Pages: 16
Date: 2015
New Economics Papers: this item is included in nep-cis, nep-com, nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Trade Diversion and High Food Prices: The Impact of the Russian Pig Meat Import Ban (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205330

DOI: 10.22004/ag.econ.205330

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