Does Egyptian Orange Exports Really have a Market Power in Saudi Arabia Market?
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Keywords

International trade, market power, residual demand elasticity, fresh orange, KSA, Egypt

How to Cite

Mazrou, Y. S. A. (2015). Does Egyptian Orange Exports Really have a Market Power in Saudi Arabia Market?. Asian Journal of Agriculture and Rural Development, 5(7), 167–176. Retrieved from https://archive.aessweb.com/index.php/5005/article/view/1395

Abstract

Egypt is one of the important orange exporters and Saudi Arabia also is an important import orange market. The Saudi orange market is a main market for Egypt which has a market share that exceeds half of Saudi orange market by 55.72%. This article aims to discover the degree of market power for Egyptian orange exports and other competitors in the Saudi market and if it is considered a measure of the relative mark- up by applying Residual Demand Elasticity approach. The results show that Egyptian orange exports has just a statistically signified market power by SUR and 3-SLS and has a negative sign, which may gain monopolistic profits by the relative mark-up over its marginal cost by about 63.7% without losing any of its market share. The source of Egyptian orange exports market power is due to: 1- product differentiation where Egypt exports navel orange most its export season compared with sweet orange which exported from other competitors. 2- Saudi Arabia Market demand characteristics which reflect on the consumers preference for Egyptian oranges.

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