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Empirical investigation of competition in Japan's raw cotton market: Implications for US cotton exports
Author(s) -
Hui Jianguo,
Couvillion Warren C.,
McLeanMeyinsse Patricia E.
Publication year - 1996
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/(sici)1520-6297(199603/04)12:2<175::aid-agr7>3.0.co;2-#
Subject(s) - china , economics , competition (biology) , agricultural economics , agriculture , international trade , international economics , geography , ecology , archaeology , biology
Under Japan's current agricultural trade policy, the raw cotton market is efficient and competitive. With Japan's declining cotton market, the United States faces strong competition from Australia, China, and Pakistan. Empirical results reveal that: US cotton competes with cotton from Australia, China, and Pakistan but complements that from Egypt, Sudan, and the rest of the world; Japan's demand for US cotton appears to be inelastic; by lowering prices, the United States could effectively reduce Japan's imports from Australia, China, and Pakistan; and Japan would prefer to import long‐staple cotton if its import expenditures increased. © 1996 John Wiley & Sons, Inc.