Russia’s and Kazakhstan’s agro-food sectors under liberalized agricultural trade: a case for national product differentiation |
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Authors: | Gerald Weber |
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Institution: | Institute for Agricultural Economics and Social Sciences, Humboldt-University of Berlin, Luisenstraße 56, 10099, Berlin, Germany |
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Abstract: | Russia is a major importer of agro-food products in the Commonwealth of Independent States (CIS), whereas Kazakhstan’s agro-food sector is more export-oriented. Based on a multi-market-model with bilateral trade, the paper investigates how a Common Agricultural Market (CAM) and World Trade Organization (WTO) accession would affect prices, quantities, and welfare on agro-food markets in both countries. Trade diversion effects are expected because of a changed tariff structure. Kazakhstan’s agro-food sector will loose price competitiveness on Russia’s markets if liberalization is too narrowly focused on import tariffs. Simulations also suggest that national product differentiation can be part of a strategy for Russian agro-food industries to cope with stronger international competition. |
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Keywords: | Author Keywords: Agricultural trade liberalization Russia Kazakhstan Partial equilibrium model Product differentiation |
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