Declining U.S. tobacco exports to australia: A derived demand approach to competitiveness

John Beghin, Fan Hu

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

The loss of competitiveness of U.S. tobacco leaf exports to Australia is empirically investigated, using industry-level time-series market data. Tobacco-relative prices, market structure, scale, Australian market distortions, and changing characteristics of cigarettes are accounted for in the investigation. A decomposition analysis reveals that a switch to lighter cigarettes and changes in the Australian domestic tobacco content policy are the major contributors to the decline of U.S. tobacco exports. Tobacco price differences between the U.S. and its competitors, alone, cannot explain the loss of competitiveness of U.S. tobacco in Australian cigarette manufacturing.

Original languageEnglish (US)
Pages (from-to)260-267
Number of pages8
JournalAmerican Journal of Agricultural Economics
Volume77
Issue number2
DOIs
StatePublished - May 1995
Externally publishedYes

Keywords

  • Australia
  • Competitiveness
  • Export
  • U.S. tobacco

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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