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State trading and non‐price discriminatory trade: The case of Japan's wheat imports
Author(s) -
Chen Kevin,
Brooks Harvey
Publication year - 1999
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(199924)15:1<41::aid-agr3>3.0.co;2-q
Subject(s) - economics , international trade , international economics , preference , microeconomics
This manuscript develops an empirical test for identifying the presence of non‐price discriminatory trade in the Japanese wheat imports. The test only requires statistical comparison of the mean markups by port of import, by class of wheat, and country of origin. The non‐parametric test reveals a trade preference by Japan for Australian Soft White wheat and the Canada Western Red Spring wheat relative to US Hard Red Winter wheat. This apparent trade preference may account for the intensity of the US trade policy to liberalize Japanese wheat import access under the WTO. © 1999 John Wiley & Sons, Inc.