European interests in the banana market.

Author(s):  
S. Tangermann
Keyword(s):  
Author(s):  
Roland Herrmann

SummaryThe objectives of this paper are (i) to assess the actual economic implications of the new European banana policy on prices, consumption and trade in Germany within a theoretical and quantitative analysis; (ii) to elaborate the welfare implications of the European banana market policy on the German banana market from the national compared with the EU’s point of view. The new European banana market policy led to the introduction of a tariff quota system on the formerly unprotected German banana market. This caused a substantial increase in German import prices for bananas, e. g. in 1994 by 95 % compared with the hypothetical situation without trade protection. Further consequences were a strong reduction of import demand and clearly rising import expenditures, by 22 % and 53 % respectively in 1994. The new banana protection on the German market caused substantial losses in consumer surplus: 1039 mill. DM in 1994, as well as deadweight losses. The size of the deadweight losses was clearly higher from the German than from the EU’s point of view. High quota rents of European traders and budgetary gains at the EU level compensated a substantial part of German consumers’ welfare losses at the EU level. This is much less the case for Germany, given the allocation of import licences in the European banana trade and the common financial system in the EU. Strong and untargeted redistributive consequences were induced by the new European banana policy even within the EU.


2020 ◽  
Author(s):  
Zewdie Habte Shikur

Abstract Local banana market prices in surplus areas are asymmetrically integrated and transmitted with that in central banana market prices or deficit areas due to geographic distance between markets, market power, and high transportation costs. As the result, the banana marketing margin is high due to high transport costs and transaction costs. Although the policy relevance of degree of vertical and spatial price transmission in banana supply chain, in Ethiopia is largely unknown, and this study assists to bridge the existing gap. The study investigates degree of spatial and vertical market integration and price transmission of banana supply chain in Ethiopia. ARDL co-integration bound tests and Granger causality tests are employed to examine vertical and horizontal price transmissions in banana supply chain using 10 years average monthly banana prices. The study finds relatively a higher degree of price transmission from central wholesale banana market to surplus banana market. Central wholesaler price has a significant effect on both banana producer and retailer prices in both long-run and short‐run. The result indicates that Granger causality is running from central wholesale market to local markets. There may be high transaction cost may reflect the vertical and spatial asymmetric price transmissions in banana supply chain. Policy interventions in banana supply chains could facilitate a faster and substantial degree of price transmission between actors in banana supply chain.


UDA AKADEM ◽  
2020 ◽  
pp. 156-183
Author(s):  
María Priscila León-Cando ◽  
 Luis Bernardo Tonon-Ordóñez

Debido a la importancia del banano en la economía ecuatoriana, es imprescindible analizar la demanda del principal mercado de banano fresco del mundo, Estados Unidos, así como estimar sus elasticidades, precio y renta de la demanda; y, analizar la relación del banano con otras frutas en este mercado. Para la estimación, se utilizó el método de Mínimos Cuadrados Ordinarios. Se determinó que, en este mercado con potencial de crecimiento, el banano es un bien inelástico y normal. El periodo analizado fue de 2001 a 2016.Palabras clave: Banano, Estados Unidos, Estimación demanda, Elasticidad precio, Elasticidad renta. Abstract. ue to the importance of banana in the Ecuadorian economy, is essential to analyze the demand of the world’s principal fresh banana market, United States, as well as estimate its price and income elasticities, and analyze the relationship of bananas with other fruits in this market. The Ordinary Minimum Squares Method was used for the estimation. It was determinated that in this market with potencial growth, bananas are inelastic, and considered a normal good. The period analyzed was from 2001 to 2016. Keywords: Banana, United States, Demand estimation, Price Elasticity, Income Elasticity


2009 ◽  
Vol 12 (2) ◽  
Author(s):  
DO Enibe ◽  
SAND Chidebelu ◽  
EA Onwubuya ◽  
C Agbo ◽  
AA Mbah

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