Title: Declining U.S. Tobacco Exports to Australia: A Derived Demand Approach to Competitiveness
Published in: Working Papers Series
Author/s: Fan Hu and John Beghin*
We investigate the loss of competitiveness of U.S. tobacco leaf exports in Australian cigarette manufacturing using industry-level time-series data. We account for relative prices, distorting policies, maturation of the cigarette market and scale, changing cigarette characteristics and market structure. We provide a decomposition analysis that reveals the relative impact of these factors over time on U.S. tobacco exports to Australia.