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Price Discrimination in Russian Wheat Exports: Evidence from Firm‐level Data
Author(s) -
Uhl Kerstin,
Perekhozhuk Oleksandr,
Glauben Thomas
Publication year - 2016
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/1477-9552.12118
Subject(s) - economics , panel data , affect (linguistics) , international market , russian economy , international trade , international economics , monetary economics , business , econometrics , economic system , linguistics , philosophy
Russia emerged as an important wheat exporter in recent years raising the question of how this will affect international wheat markets. In particular developing countries – the main destination of Russian wheat exports – could be harmed by aggressive pricing behaviour. This article analyses the exertion of price discrimination by Russian wheat exporting firms based on Krugman's pricing‐to‐market hypothesis. We apply Knetter's panel model to a firm‐level dataset and find evidence for price‐discriminating behaviour by Russian firms in 25 out of 61 destination countries over the period 2002–2011.