Trade margins, quality upgrading, and China’s agri-food export growth

2016 ◽  
Vol 8 (2) ◽  
Author(s):  
Dongwen Tian ◽  
Na Hu ◽  
Xin Wang ◽  
Li Huang
Keyword(s):  
Design Methodology ◽  
Export Growth ◽  
Relative Price ◽  
Differentiated Products ◽  
Product Price ◽  
Intensive Margin ◽  
Negative Contribution ◽  
Relative Product ◽  
Quality Upgrading ◽  
Relative Quality

Purpose The purpose of this paper is to find out the source and pattern of China’s agri-food export growth mainly along the intensive margin and the factors affecting it, especially the determinants contributing most to sustainable export growth. Design/methodology/approach The paper phases in three empirical steps: analyzing highly-disaggregated agri-food export data of China to 213 countries or economies and attempting to find some stylized facts; consecutively decomposing China’s agri-food export volume into three trade margins and calculating each of them; based on an extended heterogeneity firm and trade model with the quality margin being introduced, investigating the source and pattern of China’s agri-food export growth and the role of relevant determinants. Findings The paper reveals that the relative quality upgrading explains most of the increase along the intensive margin, to which the relative price decrease has a negligible negative contribution. Simultaneously, the heterogeneity across products does matter, since we find that the relative quality improvement and relative product price decline are more prominent for the differentiated products with larger quantity expansion along the intensive margins. Originality/value With quality upgrading dynamically, we attribute China’s long-term agri-food export growth to the quantity penetration along the intensive margin. With the relative product price distinction reflecting factor costs and productivity differences across industries, the comparative quality upgrading in differentiated products might correlate with their upward production productivity.

scholarly journals Can South Africa sustain and diversify its exports?

2016 ◽  
Vol 19 (2) ◽  
pp. 249-263 ◽  
Author(s):  
Marianne Matthee ◽  
Ernst Idsardi ◽  
Waldo Krugell
Keyword(s):  
South Africa ◽  
Human Capital ◽  
Comparative Advantage ◽  
Export Growth ◽  
Intensive Margin ◽  
Manufactured Products ◽  
Low Levels

The aim of this paper is to examine the diversification of South Africa’s exports over the period 1994 to 2012. A decomposition of export growth shows that exports of non-fuel primary commodities as well as medium-skill and technology-intensive manufactured products increased. The largest decrease was in the export of resource-intensive manufactures. These changes reflect South Africa’s endowment of relatively low levels of physical and human capital. The analysis shows that export products that are further from the country’s comparative advantage, make smaller contributions to growth in the intensive margin. It clearly shows the challenge of sustainably diversifying the export basket.

scholarly journals Do Switching Costs Make Markets Less Competitive?

2009 ◽  
Vol 46 (4) ◽  
pp. 435-445 ◽  
Author(s):  
Jean-Pierre Dubé ◽  
Günter J. Hitsch ◽  
Peter E. Rossi
Keyword(s):  
Price Competition ◽  
Switching Costs ◽  
Realistic Model ◽  
Differentiated Products ◽  
Product Price ◽  
Equilibrium Prices ◽  
Dynamic Price ◽  
Packaged Goods ◽  
Order Of Magnitude ◽  
Lock In

The conventional wisdom in economic theory holds that switching costs make markets less competitive. This article challenges this claim. The authors formulate an empirically realistic model of dynamic price competition that allows for differentiated products and imperfect lock-in. They calibrate this model with data from frequently purchased packaged goods markets. These data are ideal in the sense that they have the necessary variation to identify switching costs separately from consumer heterogeneity. Equally important, consumers exhibit inertia in their brand choices, a form of psychological switching cost. This makes the results applicable to the broad range of products that are distinctly identified (i.e., branded) rather than just to products for which there is a product adoption cost or explicit switching fee. In the simulations, prices are as much as 18% lower with than without switching costs. More important, equilibrium prices do not increase even in the presence of switching costs that are of the same order of magnitude as product price.

scholarly journals Identifying the determinants of South Africa’s extensive and intensive trade margins: A gravity model approach

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Marianne Matthee ◽  
Maria Santana-Gallego
Keyword(s):  
Gravity Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Export Growth ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Product Mix ◽  
Factors Affecting ◽  
Wide Range ◽  
Export Product

Background: The significance of the paper is twofold. Firstly, it adds to the small but growing body of literature focusing on the decomposition of South Africa’s export growth. Secondly, it identifies the determinants of the intensive and extensive margins of South Africa’s exports – a topic that (as far as the authors are concerned) has not been explored before.Aim: This paper aims to investigate a wide range of market access determinants that affect South Africa’s export growth along the intensive and extensive margins.Setting: Export diversification has been identified as one of the critical pillars of South Africa’s much-hoped-for economic revival. Although recent years have seen the country’s export product mix evolving, there is still insufficient diversification into new markets with high value-added products. This is putting a damper on export performance as a whole and, in turn, hindering South Africa’s economic growth.Methods: A Heckman selection gravity model is applied using highly disaggregated data. The first stage of the process revealed the factors affecting the probability of South Africa exporting to a particular destination (extensive margin). The second stage, which modelled trade flows, revealed the variables that affect export volumes (intensive margin).Results: The results showed that South Africa’s export product mix is relatively varied, but the number of export markets is limited. In terms of the extensive margin (or the probability of exporting), economic variables such as the importing country’s GDP and population have a positive impact on firms’ decision to export. Other factors affecting the extensive margin are distance to the market (negative impact), cultural or language fit (positive impact), presence of a South African embassy abroad (positive impact), existing free trade agreement with Southern African Development Community (positive impact) and trade regulations and costs (negative impact). In terms of the intensive margin (or the factors influencing the volume of exports), there are strong parallels with the extensive margin, with the exception being that the time involved in exporting has more of an impact than documentary requirements.Conclusion: Among the factors contributing to South Africa’s exports having largely developed in the intensive margin are a general lack of market-related information, infrastructural weaknesses (both of a physical and technological nature) and a difficult regulatory environment – all of which add to the cost and time involved in exporting. Policymakers have long spoken about the need for the country to diversify its export basket, but now talk about needs to give way to action. The government and its economic partners need to arrive at a common vision of an export sector that will be able to expand into new products and markets, be an active participant in global value chains and deliver sustainable jobs.

Section II The forecast in detail

2000 ◽  
Vol 172 ◽  
pp. 18-32
Keyword(s):  
Driving Force ◽  
Domestic Demand ◽  
Export Growth ◽  
The Other ◽  
Household Expenditure ◽  
Fixed Investment ◽  
Government Consumption ◽  
Negative Contribution ◽  
Rate Of Growth ◽  
Main Components

Domestic demand is expected to continue to be the driving force behind growth in the economy in 2000, while net trade offers a negative contribution. Household expenditure is forecast to grow by 3½ per cent, before slowing to 2½ per cent thereafter. Both fixed investment and government consumption are expected to grow this year at similar rates. The forecast rate of growth of domestic demand in 2000 is slightly faster than the main components at 4 per cent because of the accumulation of stocks, which were run down last year. Export growth is forecast to pick up to 5½ per cent against 3.9 per cent last year, rising further to 6 per cent in 2001. Imports on the other hand are forecast to grow at over 8 per cent this year, before slowing next year and in 2002.

Price satisfaction and producer loyalty: the role of mediators in business to business relationships in Kenyan mango supply chain

2016 ◽  
Vol 118 (5) ◽  
Author(s):  
Sarah Mutonyi ◽  
Karin Beukel ◽  
Amos Gyau ◽  
Carsten Nico Hjortsø
Keyword(s):  
Study Design ◽  
Design Methodology ◽  
Cross Sectional Study ◽  
Relative Price ◽  
Sectional Study ◽  
Cross Sectional ◽  
Mediating Role ◽  
The Relationship ◽  
Business To Business

Purpose The purpose of this paper is to investigate which dimensions of price satisfaction influence producers’ trust in buyers and assess the mediating role of such trust in the relationship between price satisfaction and producer loyalty in fresh fruit supply chains. Design/methodology/approach A cross-sectional study design using both semi-structured interviews and structured questionnaires was used. The study was conducted in the eastern part of Kenya and included 600 smallholders. Data was analysed using structural equation modelling. Findings The results show that price fairness, price reliability, and relative price are dimensions of price satisfaction that affect producers’ trust in the buyer. Moreover, trust between the producer and the buyer is found to be a strong mediator between price satisfaction and producer loyalty. The findings support recent studies about trust and its mediating role. Research limitations/implications The paper is based on a cross-sectional study design, limiting the causal inferences which can be drawn. Producers’ preferences change with time and future studies should be based on longitudinal designs. Originality/value This paper shows the relationship between the multidimensional nature of price satisfaction and producer loyalty with trust as a mediating variable in the business-to-business (B2B) context. Although B2B relationships have been shown to be of great importance for smallholders in enhancing business performance with their buyers, little attention has been given to the role of trust as a mediator. This study offers interesting insights into the how trust plays a mediating role between price satisfaction and loyalty in a developing country context.

scholarly journals THE EFFECT OF TRADE FACILITATION ON TRADE MARGIN OF 8 ASEAN-CHINA FREE TRADE AREA COUNTRIES (ACFTA): A GRAVITY MODEL APPROACH

2017 ◽  
Vol 1 (2) ◽  
pp. 53
Author(s):  
Ferdyan Susetyo
Keyword(s):  
Gravity Model ◽  
Random Effect ◽  
Random Effect Model ◽  
Free Trade Area ◽  
Export Growth ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Trade Facilitation ◽  
Trade Area ◽  
Port Efficiency

Trade facilitation is an effort of simplification and harmonization of international trade procedures. Trade facilitation that manifested in the form of policy packages that aim to reduce trade costs and improve export growth. Export growth can be sourced from the level of diversity of exported goods (extensive margin) and the volume of exported goods (intensive margin). This study aims to analyze the effect of trade facilitation on the extensive and intensive margin of trade eight member countries of ACFTA during the years 2006-2014. Trade facilitation indicators used in this study consisted of exporters and importers port efficiency. This study uses gravity model and estimation techniques Random Effect Model. The results showed that exporter port efficiency have a positive and significant effect on the extensive margin while importer port efficiency has a positive and significant effect on the intensive margin.

A research portfolio approach to evaluating finance journal quality

2016 ◽  
Vol 42 (4) ◽  
pp. 338-353 ◽  
Author(s):  
Morris G. Danielson ◽  
Jean L. Heck
Keyword(s):  
Financial Markets ◽  
Financial Management ◽  
Design Methodology ◽  
Publication Activity ◽  
Content Type ◽  
Academic Field ◽  
The Past ◽  
Portfolio Approach ◽  
Relative Quality

Purpose – The purpose of this paper is to update and extend Danielson and Heck (2014) to provide additional evidence about the relative quality of a set of 23 high-impact finance journals. In particular, the paper summarizes the research records of all scholars contributing articles to each of the 23 journals from 1970 to 2014, and uses this information to identify journals that publish articles by similar sets of authors, and rank the 23 journals based upon publication activity from 2010 to 2014. Design/methodology/approach – The names of all authors appearing in each of the 23 journals during the 1970 to 2014 period – and the number of appearances by each author – were summarized directly from the journals’ table of contents. From this data, the lifetime (1970-2014) research portfolio of each journal’s average author was quantified for two sub-periods: 1970-2009 and 2010-2014. Using the assumption that a journal’s quality is positively related to its ability to attract submissions from accomplished researchers, this data provides information about the authors’ subjective ranking of finance journals and about how these rankings have changed during the past five years. Findings – The finance literature experienced rapid growth during 2010-2014, with almost 25 percent of all appearances from 1970 to 2014 occurring in the last five years of the period. Based upon publication activity during 2010-2014, the Journal of Finance, the Review of Financial Studies, the Journal of Financial Economics, and the Journal of Financial and Quantitative Analysis remain the most prestigious finance outlets, followed by the Financial Analysts Journal, the Journal of Financial Markets, Review of Finance, the Journal of Financial Intermediation, Financial Management, and the Journal of Applied Corporate Finance. Research limitations/implications – The identification of a unique set of the 23 “best” journals in any academic field is an inherently subjective task. Adding journals to (or removing journals from) this population could cause the ranking of some individual journals to shift. Originality/value – Evidence about the average quality of articles appearing in the leading finance journals is useful when evaluating faculty research records for purposes of tenure, promotion, and merit awards.

Profile of food truck consumers and their opinion about food safety

2019 ◽  
Vol 50 (3) ◽  
pp. 481-495
Author(s):  
Gabriela Mazzon Valente ◽  
Lize Stangarlin-Fiori ◽  
Lais de Oliveira Seiscentos ◽  
Viviane Valle de Souza ◽  
Caroline Opolski Medeiros
Keyword(s):  
Design Methodology ◽  
Food Preferences ◽  
Food Handlers ◽  
Product Price ◽  
Content Type ◽  
Food Trucks ◽  
Economic Profile ◽  
Convenience Sampling ◽  
Safe Food ◽  
The City

Purpose This paper aims to evaluate the profile of food truck consumers at gourmet events, identifying their food preferences and opinions about the provision of safe food by this segment. Design/methodology/approach A total of 750 food truck customers in the city of Curitiba, Brazil, participated in the study. The survey investigated the socio-economic profile of the consumers, the frequency of their food consumption, the criteria for their choice of food trucks, their mean spending value, the method of payment used and the opinion of consumers about food cost and food truck hygiene conditions. Findings Most consumers were female (62.7 per cent), students (31.3 per cent) and with an average age of 29 ± 10 years. Many customers preferred the consumption of salty foods (84.0 per cent), mainly burgers and kabobs. The consumers reported spending between $6.32 and $9.03 during the events, and men spent more money than women (p = 0.000). Both thought that good conditions of hygiene (81.9 per cent), food presentation (46.9 per cent) and service (48.0 per cent) were more important than the product price (19.3 per cent). Consumers thought that the food trucks had an adequate structure (73.5 per cent) and the food handlers (74.4 per cent) had good conditions of hygiene, ensuring the safety of the food sold. Research limitations/implications On account of the convenience sampling in an urban environment, the data cannot be generalized to the entire population of the municipality and to other regions. Originality/value There are few studies with food trucks consumers in Brazil, to this writing the largest sample ever used for this type of research in this country. The results were designed to be used by professionals working in the area.

If your market is a competitive dogfight, think like a cat

2017 ◽  
Vol 45 (1) ◽  
pp. 11-19 ◽  
Author(s):  
Leonard Sherman
Keyword(s):  
Business Strategy ◽  
Design Methodology ◽  
Service Differentiation ◽  
Differentiated Products ◽  
Value Proposition ◽  
Content Type ◽  
Profit Margins ◽  
Corporate Leaders ◽  
A Company ◽  
Practical Implications

Purpose The article helps answer one of the most urgent questions facing corporate leaders: how can a company trapped in a competitive market innovate successful new products that are meaningfully different? Design/methodology/approach The article explains how to implement three business-strategy frameworks that have emerged, all of which provide useful guidance to entrepreneurs and corporate innovators seeking to identify meaningfully differentiated products and services that deliver a compelling consumer value proposition. Findings The three strategy frameworks reviewed in this article provide insightful perspectives on how companies can break away from the pack to create sizeable opportunities for profitable growth, even in industries that are struggling with sluggish demand and slim profit margins. Practical implications Be prepared to disrupt your own business when the inevitable onset of Red Ocean market conditions begins to diminish your prospects for continued profitable growth. Originality/value A comprehensive look at product and service differentiation strategies that can focus the hunt for breakthrough innovations.

scholarly journals The Role of Extensive and Intensive Margins in Export Growth of Turkey to Central and Eastern European Countries

2016 ◽  
Author(s):  
Gizem Akbulut
Keyword(s):  
International Trade ◽  
Growth Rates ◽  
Product Variety ◽  
Export Growth ◽  
Export Market ◽  
Added Value ◽  
The European Union ◽  
Intensive Margin ◽  
Trade Relations ◽  
Extensive And Intensive Margins

In the recent years, Central and Eastern Europe Countries-10 (CEEC-10) countries are implementing policies for developing in international trade relations and these countries are relatively small and open economies. On the other hand, they increase both provide a dynamic increase in exports and export market share, to facilitate the European Union (EU) and their activities to integrate into world trade. The purpose of this study, with CEEC-10 of Turkey’s sectoral export growth rates decomposes into extensive and intensive margins. Also intensive margin decomposes into price and quantity components. By building on the methodology pioneered by Feenstra (1994) and Hummels and Klenow (2005) and then “the decomposition of export growth rates” method developed by Bingzhan (2011). Intensive margin is the growth in products that were exported in both periods. Extensive margin is the growth in product variety or new trade partners. In the empirical part of the study were used the BACI international trade database from CEPII. The database provides the export values and quantities for Turkey to CEEC-10 at the Harmonized System’s (HS96) six-digit level over period 2006 to 2013. Foreign trade activities of countries is an important channel both to gain of international qualification and to the realization of economic growths and/ or in terms of sustainability of the current growth rates. According to results of a study, with CEEC-10 Turkey’s export is mainly explained generally by the quantity growth rather than price growth. In other words, export growth carries with the low added value product.

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