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Global rice trade competitiveness: a shift‐share analysis
Author(s) -
Lakkakula Prithviraj,
Dixon Bruce L.,
Thomsen Michael R.,
Wailes Eric J.,
Danforth Diana M.
Publication year - 2015
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12162
Subject(s) - competition (biology) , economics , international trade , econometric analysis , market share , international economics , government (linguistics) , business , economic geography , econometrics , biology , ecology , linguistics , philosophy , finance
Changes in country shares of global rice exports from 1997 to 2008 are analyzed using an econometric, shift‐share analytical framework. This framework estimates growth rates and disaggregates these rates of change into geographical structure effects and performance effects. The performance effect is further decomposed into two subeffects accounting for adaptation to changes in the geographical structure of the marketplace and a competitiveness effect. A restricted, weighted, two‐way fixed effects model is specified for estimating the geographical structure and performance effects. Results indicate a growing concentration among a few exporting countries in the global rice market, and the competitiveness effect is often significant. Government policies affecting rice trade and the competitiveness of trading partners are important factors for the shifts in rice trade patterns. In particular, Vietnam is an emerging, major player in global rice trade in competition with Thailand.