Factor and Product Market Tradability and Equilibrium in Pacific Rim Pork Industries
Journal of Agricultural and Resource Economics
This study uses a new market analysis methodology to examine price and trade relationships in eight Pacific Rim factor and product markets central to the Canadian and U. S. pork industries. The new method enables direct estimation of the frequencies with which a variety of market conditions occur, including competitive equilibrium, tradability, and segmented equilibrium. While extraordinary profit opportunities emerge episodically in a few niche markets, the vast majority of the markets studied are highly competitive— exhibiting zero estimated marginal profits to spatial arbitrage at monthly frequency— and internationally contestable. With a few notable exceptions due primarily to nontariff barriers, and despite significant remaining tariffs in some niches, the Pacific Rim is effectively a single market for pork producers and processors today.
Barrett, Christopher B., Jau Rong Li, and DeeVon Bailey. Factor and Product Market Tradability and Equilibrium in Pacific Rim Pork Industries. Journal of Agricultural and Resource Economics 25(July 2000):68-87.