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The impact of imports and exports on domestic markets: An approach to detecting the relationships
Institution:1. International Food Policy Research Institute, United States;2. International Food Policy Research Institute, Egypt;3. University of Laval and Partnership for Economic Policy (PEP), Canada;4. International Maize and Wheat Improvement Center, Kenya;1. Department of Environmental Systems Science, Federal Institute of Technology (ETH) Zürich, Sustainable Agroecosystems Group, ETH Zurich, Zürich 8092, Switzerland;2. Department of Agriculture, Food and Environment, University of Pisa, Via del Borghetto 80, Pisa 56124, Italy;3. Department of Food and Drug, University of Parma, Parma 43100, Italy;4. Countryside and Community Research Institute (CCRI), University of Gloucestershire, Gloucester GL2 9HW, UK;5. UMR Innovation, Institut National de la Recherche Agronomique (INRA), Montpellier 34060, France;6. Department of Economics and Management, University of Florence, Via delle Pandette 9, Building D6, 50127 Florence, Italy;1. School of Accounting and Finance, The Hong Kong Polytechnic University, Hong Kong;2. Department of Economics, University of California, Santa Barbara, United States;3. Bren School of Environmental Science and Management, Department of Economics, University of California, Santa Barbara, United States;4. Environmental Research Center, Duke Kunshan University, China;5. Nicholas School of the Environment, Duke University, United States;6. IZA, Germany;7. NBER, United States;1. ITAP, Univ Montpellier, INRAE, Institut Agro, Montpellier, France;2. ELSA, Research Group for Environmental Lifecycle and Sustainability Assessment, Montpellier, France;3. UE0695, Domaine de Gotheron, INRAE, St-Marcel-les-Valence, France;4. LBE, Univ Montpellier, INRAE, Montpellier, France
Abstract:This paper poses the question of whether it is possible to identify whether imports can exert an identifiable constraint on the pricing behavior of domestic producers of a good. A methodology is proposed and implemented for doing precisely this. In particular a model of the cement market in the United States is estimated and the impact of price on market behavior explored. The conclusion suggests that, at least for cement, imports have the predicted relationships. Finally, the question of whether the market model constructed is stable in the statistical sense is addressed. Only the export relationship is problematic.
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