MARKET POWER IN THE WORLD MARKET FOR SOYMEAL EXPORTS

In this article, the degree of imperfect competition in the world mark et for soymeal exports is estimated using a structural econometric mod el. The procedure consists of estimating a demand function and the ind ustry first-order profit-maximization condition, from which an estimat e of the degree of market power can be retrieved. Using a nonlinear th ree-stage least squares procedure, the estimate of market power shows that the world market for soymeal exports is perfectly competitive. Th e empirical results also indicate that this market was competitive eve n prior to entry by Argentinean firms in the mid-1970s.