Market power of Brazilian exports of fresh beef to the European Union in the period 1995-2008
DOI:
https://doi.org/10.4013/4295Abstract
The European Union is the main market of the exporting sector of beef from Brazil, which is characterized by protectionist practices that distort the market equilibrium. Moreover, the Brazilian exports of fresh beef to the EU have suffered continuous declines. From this context, the main objective of this paper is to measure the market power of Brazil’s exports of fresh beef to the EU in the period from 1995 to 2008. The study uses the New Empirical Industrial Organization (NEIO) approach based on a system of supply and demand. The estimated value obtained for the parameter of market power was 0.8205, which is much closer to the Cournot-Nash solution (oligopoly). This result is consistent with information form trade in the European market, given the low number of competing countries, a fact which shows evidence of strong barriers to enter/exit from this sector.
Key words: beef, European Union, NEIO, market power.
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