Impact on Southeast-Asian Wheat Markets of Export Uncertainty by Emerging Exporting Countries

A Residual Demand Elasticity Model Approach

Abstract

This study examines how the export uncertainty of burgeoning exporting countries affects the wheat markets in Southeast Asia. Global crises have caused tensions to deteriorate in the global wheat market, which has led various countries to impose export restrictions. By using the residual demand elasticity model to account for the oligopolistic market structure, this study finds that some exporters possess market power in Southeast Asia, with changes in the quantities of exports affecting importers’ unit value. The research concludes that multiple exporters possess market power, while compounded crises could affect the unit value of imported wheat in Southeast Asia.