The effect of China's domestic public storage on world market prices: the case of cotton

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wenshou Yan ◽  
Kaixing Huang
Keyword(s):  
Theoretical Model ◽  
Trade Policy ◽  
World Market Price ◽  
Market Price ◽  
International Market ◽  
World Market ◽  
Market Prices ◽  
Content Type ◽  
World Price ◽  
The World

PurposeDuring world price spike periods, the government is more likely to apply trade distortions to stabilize domestic prices, but the trade distortions would amplify fluctuations of international market prices. Which type of policy may stabilize the domestic market price, but not disturb the international market? This paper answers the question by taking public storage policy as a case study in the context of trade policy. Specially, this paper tries to identify the effect of domestic public storage on the world market price.Design/methodology/approachThis article extends a standard theoretical model of trade policy through incorporating domestic public storage policy and makes the model more applicable in the context of China. The extended model is then applied to analysis how domestic public storage policy affects the international market price in the context of trade policy. Finally, a properly identified structural vector auto-regression technique is applied to test the effect of domestic public storage on the world market price by using cotton data from China.FindingsThe theoretical model indicates that China's public storage policy could stabilize the international market price. In order to test the working mechanisms, China's soaring public storage between 2010 and 2014 is employed to identify the effects of China's cotton storage on the volatility of the world price. The empirical findings show that China was able to stabilize the international price of cotton to a non-trivial extent through alteration of its public stockpile.Originality/valueThe first contribution is that this paper extends a standard theoretical model of trade policy to incorporate domestic public storage policy, which enables us to explore the effects of domestic public storage policy on the world price in the context of China. The second major contribution is that this paper provides evidence that, as a large player in the world market, China's public storage policy could stabilize the international agricultural price to a substantial degree.

West African cocoa farmers face price disappointment

2020 ◽  
Keyword(s):  
World Market Price ◽  
Market Price ◽  
World Market ◽  
West African ◽  
Medium Term ◽  
Content Type ◽  
Minimum Income ◽  
Cocoa Farmers ◽  
Guaranteed Minimum Income

Significance However, with COVID-19-related disruptions weakening chocolate demand, and expectations for another tumble in cocoa’s world market price, the Ivorian Coffee and Cocoa Board (CCC) and the Ghana Cocoa Board (Cocobod) face budgetary challenges in providing a promised guaranteed minimum income. Impacts Though both regulators face pre-season financing challenges, they expect to secure financing for 2020/21 harvest cocoa purchases. Chocolate manufacturers in consumer countries will maintain pressure on the CCC and Cocobod to pay out the LID as promised to farmers. Demand for chocolate is expected to recover in the medium term, giving some reassurance for an eventual modest cocoa price recovery.

scholarly journals Validation of EXNUT for Scheduling Peanut Irrigation in North Carolina1

1998 ◽  
Vol 25 (1) ◽  
pp. 50-58 ◽  
Author(s):  
J. I. Davidson ◽  
W. J. Griffin ◽  
M. C. Lamb ◽  
R. G. Williams ◽  
G. Sullivan
Keyword(s):  
World Market Price ◽  
Market Price ◽  
World Market ◽  
Irrigation Scheduling ◽  
Market Prices ◽  
Percentage Point Increase ◽  
Net Returns ◽  
Point Increase ◽  
County Agents ◽  
Medium Type

Abstract During crop years 1989-1992 EXNUT concepts and a version of EXNUT modified for North Carolina conditions were evaluated. This version was revised and evaluated on 20-25 peanut fields during crop years 1993, 1994, 1995, 1996, and 1997 when average yields of 4360, 4890, 4640, 4530, and 4770 kg/ha, respectively, were obtained. These yields averaged 880 kg/ha higher than average yields produced on these irrigated fields prior to 1993 and 1660 kg/ha higher than the average county yields during 1993-1997. The farmers and county agents reported that irrigation scheduled by EXNUT provided an estimated 500 kg/ha increase in yields. Costs of running EXNUT were estimated at $5.14/ha. Using these estimates, net returns from using EXNUT instead of normal irrigation scheduling by the farmer was $272.76/ha. Average compliance of farmers with EXNUT water scheduling recommendations was 85 and 75% for wet years (1994 and 1996) and dry years (1993, 1995, and 1997), respectively. On the average, a 71% or higher compliance with EXNUT recommendations on fields with sandy- and medium-type soils resulted in yields greater than 4480 kg/ha, making irrigation of peanuts feasible in these fields at a world market price as low as $350 per metric ton. Every percentage point increase in compliance with EXNUT recommendations on these fields resulted in an increase in yield of 50 and 110 kg/ha during wet and dry years, respectively. Yields from fields with heavy type soils averaged only 3850 kg/ha because of excessive disease and harvest losses. On the average, peanuts can be produced on this heavy-type soil at world market prices of $410/metric ton if compliance with EXNUT recommendations is at least 80%. This 9-yr study is an example of how expert systems can be transferred through cooperation of researchers, extension specialists, and users.

scholarly journals STRATEGIC DIRECTIONS OF ORGANIZATION GARLIC BUSINESS IN UKRAINE

2019 ◽  
pp. 173-186
Author(s):  
Ivan ZUBAR
Keyword(s):  
World Market Price ◽  
Market Price ◽  
World Market ◽  
Business Interests ◽  
Planting Material ◽  
Current State ◽  
Wide Range ◽  
The World ◽  
Effective Development

The article considers the current state of the garlic market in the world. It is determined that garlic is one of the most widely used crops in the world and has a wide range of uses, which makes it a promising object of business interests. An overview of the dominant trends in the production of garlic, the capacity of the world market, price aspects and formed the top 5 countries-exorcists of this product. The trend of gradual growth of volumes of deliveries and currency earnings has been recorded. The tendencies of export-import circulation of garlic are analyzed, features of production and realization of this product in Ukraine are determined. The key problems of domestic garlic are outlined. A description of the varietal conglomeration of domestic garlic selection was carried out. On the basis of author's data, the calculation of the efficiency of using different planting material and landing schemes was made. Also calculated the expediency of storing garlic in vegetable stores and selling it in winter. On the basis of which are summarized the main vectors of the organization of profitable garlic business in the countryside. According to the results of the conducted research, a number of problematic factors that restrain the effective development of this industry in Ukraine are proposed and the key paradigmatic directions of their solution are proposed.

Developments in the EU and world sugar markets in 2009

2010 ◽  
pp. 29-36
Author(s):  
Stephan Nolte ◽  
Harald Grethe
Keyword(s):  
World Market Price ◽  
Market Price ◽  
World Market ◽  
Current Season ◽  
Implementation Phase ◽  
Production And Consumption ◽  
Determining Factors ◽  
The World ◽  
Sugar Market ◽  
The Eu

The article reviews the developments on the sugar market in 2009. After the introduction, it starts with an overview of production and consumption in all world regions. Production shortfalls in major producing countries led to an increase of the world market price to a 28 year high. For the current season, a further deficit is expected. The next chapter informs about developments on the EU market, where the implementation phase of the 2006 reform ended and a new regulation for sugar imports from ACP countries entered into force. The last chapter discusses model based forecasts of the world sugar market over the coming decade and determining factors of the medium term development of production and consumption of sugar.

scholarly journals Information, Finance, and the New International Inequality: The Case of Coffee

2002 ◽  
pp. 215-250 ◽  
Author(s):  
John Talbot
Keyword(s):  
World Economy ◽  
World Market Price ◽  
Raw Materials ◽  
Market Price ◽  
Extended Period ◽  
World Market ◽  
Access To Information ◽  
Market Participants ◽  
International Inequality ◽  
The World

This paper argues that a “new” international inequality has been superimposed over the “old” international inequality, and that this superimposition can help to explain the increasing degree of inequality in the world economy today. The old international inequality was based on the colonial division of labor, in which the periphery provided raw materials to core-based industries. The new inequality is based on control over ?ows of information and ?nancial capital by core-based transnational corporations (TNCs). This argument is illustrated using the empirical example of the world coffee market, comparing the responses of market participants to twosevere frosts in Brazil, which significantly disrupted the market. Following the first frost, in 1975 under the “old” international inequality, TNCs responded gradually amidst uncertainty over the frost’s impacts, allowing coffee-producing countries to reap windfall profits during an extended period of high prices. TNCs responded immediately to the second frost in 1994, due to their access to information about the severity of the frost and their control over financial instruments used to set the world market price of coffee. This quick response enabled them to capture most of the excess profits resulting from a much shorter period of high prices.

Forecasting of the World Market Price of Oil

2019 ◽  
pp. 41-60
Author(s):  
Adalat Muradov ◽  
Yadulla Hasanli ◽  
Nazim Hajiyev
Keyword(s):  
World Market Price ◽  
Market Price ◽  
World Market ◽  
The World

Tradable emission quotas, technical progress and climate change

1996 ◽  
Vol 1 (4) ◽  
pp. 465-487 ◽  
Author(s):  
I.G. Bertram
Keyword(s):  
Technical Progress ◽  
World Market Price ◽  
Market Price ◽  
World Market ◽  
The South ◽  
Quota System ◽  
Quota Allocation ◽  
The World ◽  
Emission Quotas ◽  
Per Capita

ABSTRACTThe paper reviews two alternative rules for allocation of property rights in a global greenhouse-gas emissions budget, assuming implementation of a tradablequota arrangement. These are the per capita rule and no-regrets-for-the-South (NRFTS) rule. The operation of a quota market under these alternative regimes is simulated on a spreadsheet, using 1990–1 data from 125 countries. A significant result is that once the South has secured a quota allocation based on the per capita principle, it stands collectively to lose from progress in abatement technology because of the strong link from technical progress to the world market price of quota. The more restricted NRFTS rule gives the South smaller gains from the quota system, but enables it to retain some of the rents from its own technical progress. Some implications for the South's position in future negotiations are noted.

DAYA SAING EKSPOR KARET ALAM TIGA NEGARA ITRC (INDONESIA, THAILAND, MALAYSIA) DI PASAR INTERNASIONAL PERIODE 1994-2018

2020 ◽  
Vol 4 (1) ◽  
pp. 81-87
Author(s):  
Shinta Dwi Ardanari ◽  
Rynalto Mukiwihando
Keyword(s):  
Natural Rubber ◽  
Analytical Method ◽  
International Market ◽  
World Market ◽  
Competitive Advantages ◽  
Market Demand ◽  
Export Share ◽  
Intense Competition ◽  
Time Period ◽  
The World

ABSTRACTShare of Indonesia's export value of natural rubber in the international market is almost always below Thailand, which is one of the competiting countries. The others countries began to become a threat to Indonesia because their exports share of natural rubber showed an increasing. This indicates that there is intense competition in the international market. As a country with the largest plantation area in the world, Indonesia should be superior. But this can be an opportunity to be able to compete in the world market so it is important to be managed more deeply so that it can create competitive advantages that can increase competitiveness. This study aims to determine the position of the competitiveness of natural rubber exports for the three countries of ITRC in the international market. The analytical method used is dynamic RCA. The results showed that all products of natural rubber coded HS 400110, 400121, 400122, 400129 and 400130 were experiencing a decline in growth in the export share of the three countries of ITRC : Indonesia, Thailand and Malaysia, but the market demand conditions for these products were declining in that time period.

Are export earnings from India’s bilateral intra-industry trade with the US and China robust enough?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sagnik Bagchi ◽  
Surajit Bhattacharyya
Keyword(s):  
Current Account ◽  
Manufacturing Industry ◽  
Current Account Deficit ◽  
Export Price ◽  
World Market ◽  
Export Share ◽  
Content Type ◽  
Persistent Problem ◽  
Industry Trade ◽  
The World

Purpose This paper aims to explore whether India’s export basket in the bilateral intra-industry trade (IIT) with two of its top trading partners characterize robust export earnings or not. This is pertinent for two reasons. First, India has a persistent problem of current account deficit for over decades now. Second, whether India’s export diversification strategy by participating in global value chains to improve export share in the world market led to the problem of the fallacy of composition. Design/methodology/approach This study considers bilateral trade data between India-USA and India-China at the HS-6 digit level over the period 1990–2018. The magnitude of total IIT is computed using the Grubel and Lloyd (1971) index. This paper then uses the unit value dispersion criterion to disentangle the magnitude of total IIT into horizontal and vertical IIT. Through a stepwise econometric exercise, this paper explores the attributes of exported goods in the IIT basket in terms of the directions of ToT, export share and export-price elasticity. Findings Across the two country pairs, the major contributors to the upsurge in IIT are five manufacturing industry groups of chemical, plastics and rubber, textiles, base metals and machinery and mechanical appliances. Across the industry groups, the dominant form of IIT has been low vertical IIT. Most of the industry groups do not characterize robust export earnings as the commodity groups have an elastic demand and an increasing trend of Terms of Trade (ToT). The exceptions are the industry groups of chemicals and textiles in India-China and India-USA, respectively. Research limitations/implications The concern of slim export earnings in most industry groups offers scepticism in maintaining the sustainability of the current account. The problem of the fallacy of composition also cannot be ruled out given the dominance of low vertical IIT. This study argues that these industry groups need to engage in labour market reforms and require access to easy credit to achieve competitiveness in the world market. Originality/value The analysis performed in this paper attempts to integrate the Prebisch-Singer hypothesis in the context of IIT. Empirical evidence to such an issue is not profound.

North Macedonian crisis spurs move to renewable energy

2022 ◽  
Keyword(s):  
Power Plants ◽  
International Market ◽  
Well Being ◽  
Global Market ◽  
Market Prices ◽  
Content Type ◽  
Market Situation ◽  
The Government ◽  
Domestic Electricity ◽  
Health And Well Being

Significance Electricity companies wanted a near-38% rise amid soaring international market prices, but the ERC wanted to avoid a price shock. In November, the government declared an ‘energy crisis’ at the ERC’s request, thanks to reduced domestic electricity supply and the global market situation, and extended it in December for six months. Impacts Investment in infrastructure and technologies should contribute to economic growth and create jobs. Care will have to be taken that closing established mines and power plants do not depress economies locally and raise unemployment. Rising domestic utility prices will inflict political damage on a fragile government. Phasing out coal will improve air quality and population health and well-being, with knock-ons for healthcare priorities and spending.

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