An econometric analysis of market power in Azerbaijani wheat market: Evidence from Kazakhstan and Russia

Gulmira Gafarova, Oleksandr Perekhozhuk and Thomas Glauben

No 211642, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: Azerbaijan is a net-importer of wheat with average self-sufficiency ratio of 55%. In order to meet the domestic needs completely, Azerbaijan imports wheat mainly from Kazakhstan and Russia. The objective of this study is to investigate the extent of market power exercised by the Kazakh and Russian exporters in Azerbaijani wheat import market. Toward this aim, we apply the Residual Demand Elasticity approach, and fit the model with monthly time-series data covering the period from January 2004 to December 2013. Total export quantity of an exporting country and population of an importing country are selected as excluded variables in this analysis. The empirical results demonstrate that the Russian exporters exercise market power in Azerbaijani wheat market, but the Kazakh exporters face perfect competition. Moreover, we argue that the Ukrainian exporters are able to constraint both Kazakh and Russian exporters’ market powers in Azerbaijani wheat market.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 17
Date: 2015
New Economics Papers: this item is included in nep-cis, nep-cwa and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:211642

DOI: 10.22004/ag.econ.211642

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