International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

Archives

TuEngr+Logo
:: International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

http://TuEngr.com


ISSN 2228-9860
eISSN 1906-9642
CODEN: ITJEA8


FEATURE PEER-REVIEWED ARTICLE

Vol.12(10) (2021)

  • Domestic Market Stability through Concentration Assessment: The Case of Russian Grain Exports

    Inna V. Andronova, Veronika Yu. Chernova, Nataliya V. Dyuzheva, Andrei A. Karavdin (Department of International Economic Relations, People's Friendships University of Russia, Moscow, RUSSIA).

    Disciplinary: Agricultural Economic, Marketing (Market behavior), International Agricultural Trade & Policy.

    ➤ FullText

    doi: 10.14456/ITJEMAST.2021.209

    Keywords: Grain market; Trade concentration; Herfindahl-Hirschman index; Concentration index; Linda indices; Agro exports; Government regulation; Russian wheat export.

    Abstract
    The article is devoted to the assessment of concentration and analysis of the competitive environment in the grain export market in the context of strengthening regulatory measures and an increase in the share of the public sector. The authors consider the case of Russia as one of the leaders in food exports in the global market. To assess the concentration, a stage-by-stage approach was adopted with the calculation of the Herfindahl-Hirschman indices, concentration coefficient, and Linda index. The consistency of the obtained data on various parameters makes it reasonable to use the selected indices in the analysis of concentration in the agro-industrial complex. The results show that the concentration of sellers in the grain export market is low. It was confirmed that the introduction of a grain export quota and the distribution of its volume among market members against the background of an increase in the share of the public sector in the industry did not cause an increase in concentration and strengthening of the competitive positions of leading firms. Three groups of exporting companies were identified and an increase in the share of exporting companies partially owned by the state was recorded, which led to an aggravation of the competition. The growth of the public sector in the grain export market can be considered a manifestation of a purposeful policy to squeeze foreign traders out of the Russian market. Trends also indicate that the competitive position of individual exporters may strengthen in the near future.

    Paper ID: 12A10T

    Cite this article:

    Andronova, I. V., Chernova, V. Yu., Dyuzheva, N. V., and Karavdin, A. A. (2021). Domestic Market Stability through Concentration Assessment: The Case of Russian Grain Exports. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 12(10), 12A10T, 1-12. http://doi.org/10.14456/ITJEMAST.2021.209



References

  1. AGI. (2021). Agro Data. Agroinvestor Magazine. Retrieved Jan 2021, https://www.agroinvestor.ru
  2. Bukvic, R. (2020). Concentration and competition in Serbian banking sector in the period 2016-2018. Ekonomika, 66, 17-35. DOI: 10.5937/ekonomika2002017B
  3. Bukvic, R., & Zakharov, V. (2013). The use of index concentration Linda and discriminant analysis in research of market structures. In 7th International Multidisciplinary Scientific Conference Eurobrand, TQM centar, Zrenjanin, 2013 (pp. 194-213). Retrieved Jan 2021, from https://ssrn.com/abstract=2735564
  4. DAR. (2020). Don't Feed with Bread: Russian Wheat Has Become More Expensive than Oil. Daily Agricultural Review. Retrieved Jan 2021, http://agroobzor.ru/article/a-1176.html
  5. Dvinsky, K. (2021). Safety Comes First: There is no Room for Foreigners in our Grain Market. Retrieved Jan 2021, https://tsargrad.tv/articles/bezopasnost-prevyshe-vsego-inostrancam-net-mesta-na-nashem-zernovom-rynke_320343
  6. FCS. (2021). Russian wheat exports in 2011-2020. Federal Customs Service of the Russian Federation Retrieved Jan 2021, https://customs.gov.ru/statistic/
  7. Herfindahl, O. (1959). Copper Costs and Prices: 1870-1957. Baltimore: The John Hopkins Press.
  8. Hirschman, A.O. (1964). The paternity of an index. The American Economic Review, 54(5), 761-762.
  9. HLPE. (2017). Nutrition and Food Systems. Report of the High-Level Panel of Experts on Food Security and Nutrition of the Committee for World Food Security. Rome.
  10. Kotsofana, T.V., & Stazhkova, P.S. (2011). Comparative analysis of the application of concentration indicators by the example of the banking sector of the Russian Federation. St Petersburg University Journal of Economic Studies, 4, 30-40.
  11. Laurent, P. (2017). Concentration of the agricultural production in the EU: the two sides of a coin. In 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261439. European Association of Agricultural Economists.
  12. Linda, R. (1976). Methodology of Concentration Analysis Applied to the Study of Industries and Markets. Studies. EU Commission - Working Document. Retrieved Jan 2021, https://core.ac.uk/download/pdf/5091475.pdf
  13. MEDRF. (2020). Results of Foreign Economic Activity of the Russian Federation in 2019. Ministry of Economic Development of the Russian Federation. Retrieved Jan 2021, from https://economy.gov.ru/material/dokumenty/itogi_vneshneekonomicheskoy_deyatelnosti_rossiyskoy_federacii_v_2019_godu.html
  14. Moon, E. (2019). Big Ag Monopolies Have Stifled Small Farmers. 2020 Democrats Want to Break Them Up. Retrieved Jan 2021, https://psmag.com/social-justice/big-ag-monopolies-have-stifled-small-farmers-2020-democrats-want-to-break-them-up
  15. Murphy, S. (2006). Concentrated Market Power and Agricultural Trade. EcoFair Trade Dialogue Discussion Paper No.13.
  16. Murphy, S., Burch, D., & Clapp, J. (2012). Cereal Secrets: The World’s Largest Commodity Traders and Global Trends in Agriculture. Oxfam Research Reports. Retrieved Jan 2021, https://www-cdn.oxfam.org/s3fs-public/file_attachments/rr-cereal-secrets-grain-traders-agriculture-30082012-en_4.pdf
  17. Pavensky, I. (2018). Top-30 Grain Exporters. Agroinvestor. Retrieved Jan 2021, https://www.agroinvestor.ru/rating/article/30049-top-30-eksporterov-zerna/
  18. Pavensky, I. (2019). Potential Fell - Records Remained. Agroinvestor. Retrieved Jan 2021, https://www.agroinvestor.ru/rating/article/32008-potentsial-upal-rekordy-ostalis/
  19. Pavensky, I. (2020). Staying in the Leaders. Agroinvestor. Retrieved Jan 2021, https://www.agroinvestor.ru/analytics/article/33967-ostatsya-v-liderakh-nesmotrya-na-slozhnyy-sezon-rossiya-sokhranila-pervoe-mesto-v-mirovom-eksporte-p/
  20. RMA. (2021a). Grain Exports Tariff Quota. Ministry of Agriculture of the Russian Federation. Retrieved Jan 2021, https://mcx.gov.ru/ministry/departments/departament-ekonomiki-investitsiy-i-regulirovaniya-rynkov/industry-information/info-tarifnaya-kvota-na-eksport-zernovyh/
  21. RMA. (2021b). Operational Review of the Agricultural Product Exports (as of February 7, 2021). Ministry of Agriculture of the Russian Federation. Retrieved Feb 2021, from https://mcx.gov.ru/upload/iblock/43e/43ebeccde18f0c579da0faed3306e062.pdf
  22. Sexton, R.J., & Xia, T. (2018). Increasing concentration in the agricultural supply chain: Implications for market power and sector performance. Annual Review of Resource Economics, 10, 229-251. https://doi.org/10.1146/annurev-resource-100517-023312
  23. Sinitsyna, I. (2021). Foods Continue to Rise in Price Despite the Bans of Officials. Retrieved Jan 2021, https://www.vtimes.io/2021/02/04/produkti-prodolzhayut-dorozhat-vopreki-zapretam-chinovnikov-a2967
  24. Sunde, T., & Charumbira, M. (2010). Seller concentration in the grain milling industry. American Journal of Economics and Business Administration, 2. DOI: 10.3844/ajebasp.2010.247.252
  25. USDoJ. (2010). Horizontal Merger Guidelines. U.S. Department of Justice and the Federal Trade Commission. Retrieved Jan 2021, https://www.justice.gov/atr/horizontal-merger-guidelines-08192010#5c
  26. Uzun, V.Ya., & Shagaida, N.I. (2019). Assessment of the impact of institutional and structural changes on the development of the agricultural sector in Russia. Economic Issues, 4, 39-58. DOI: 10.32609/0042-8736-2019-4-39-58
  27. World Bank. (2009). A State Trading Enterprise for Grains in Russia? Issues and Options. Washington, DC: World Bank. Retrieved Jan 2021, https://openknowledge.worldbank.org/handle/10986/18899
  28. Zubareva, Yu.V., & Oznobikhina, A.O. (2019). The indicators of the size of agricultural enterprises and the method of their determination. Moscow Economic Journal, 11, 470-477. DOI: 10.24411/2413-046X-2019-10179


Other issues:
Vol.12(9)(2021)
Vol.12(8)(2021)
Vol.12(7)(2021)
Vol.12(6)(2021)
Vol.12(5)(2021)
Vol.12(4)(2021)
Vol.12(3)(2021)
Archives




Call-for-Papers

Call-for-Scientific Papers
Call-for-Research Papers: ITJEMAST invites you to submit high quality papers for full peer-review and possible publication in areas pertaining engineering, science, management and technology, especially interdisciplinary/cross-disciplinary/multidisciplinary subjects.

To publish your work in the next available issue, your manuscripts together with copyright transfer document signed by all authors can be submitted via email to Editor @ TuEngr.com (no space between). (please see all detail from Instructions for Authors)


Publication and peer-reviewed process:
After the peer-review process (4-10 weeks), articles will be on-line published in the available next issue. However, the International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies cannot guarantee the exact publication time as the process may take longer time, subject to peer-review approval and adjustment of the submitted articles.

Disclaimer: All products names including trademarksTM or registered® trademarks as well as intellectual properties mentioned in ITJEMAST's articles are the property of their respective owners, using for identification and educational purposes only. Use of them does not imply any endorsement or affiliation. Information publisihed in ITJEMAST, reflected only personal view of the authors, is very fact specific with particular assumptions and thus may not apply to any specific situations. Specific advices should sought from professionals in the fields. Under no circumstances shall its Editors, Editorial Board members, and the authors be liable for any direct or indirect, incidental or consequential losses or damages that result from the uses of or the reliances upon the ITJEMAST published information.

©2021 All Rights Reserved.