[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/iamost/296499.html
   My bibliography  Save this paper

Oligopsony power in the Kazakh grain supply chain

Author

Listed:
  • Chezhia, Giorgi
Abstract
The Kazakh grain producing and processing sectors are prominent components of the Kazakh agriculture. Production and export of grain, especially of wheat and wheat flour, has demonstrated significant annual growth after the 1990's crisis. However, the grain market is highly regulated by the government and some of the implemented policy instruments cause local grain market distortions. For example, the wheat export ban imposed by the government in 2008 triggered local wheat price fluctuations, followed by the price spikes after the ban elimination. In addition to the government interventions, the Kazakh grain sector is seriously challenged by production inefficiency, outdated production technology, low yields, limited access to financial recourses, landlocked position of the country and underdeveloped infrastructure. Furthermore, a non-competitive market structure, such as asymmetric price developments and antitrust law violations, is observed within the Kazakh grain supply chain. Evidence suggests that the grain processing sector, procuring roughly a third of the grain produced in the country, might be influencing the grain prices in Kazakhstan. Moreover, the grain sector became highly concentrated in recent years. Many processing companies exit the sector, enabling the remaining players to control the large share of the market. Therefore, the focus of this study is to analyze the structure of the grain supply chain in Kazakhstan, followed by the examination of the competitiveness of the Kazakh grain processing sector using econometric analyses. The econometric analyses are conducted within the framework of the New Empirical Industrial Organizations (NEIO). The three approaches being applied for the market power analysis are Hall's approach, General Identification Method (GIM) and Production Theoretical Approach (PTA). The results are examined and reported in combination with the analysis of the grain supply chain. [...]

Suggested Citation

  • Chezhia, Giorgi, 2019. "Oligopsony power in the Kazakh grain supply chain," Studies on the Agricultural and Food Sector in Transition Economies 296499, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamost:296499
    DOI: 10.22004/ag.econ.296499
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/296499/files/sr_vol94.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.296499?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Crop Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iamost:296499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iamoode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.