Forest Sciences Commons^™

Measuring The Market Power Of The Banana Import Market In Turkey, Seli̇m Adem Hatirli, Eugene Jones, Ali̇ Riza Aktaş

Turkish Journal of Agriculture and Forestry

Banana production in Turkey represents a small fraction of that required to meet domestic consumption. Domestic consumption totaled 188,000 t in 2000, whereas production amounted to just 64,000 t, or 34% of consumption. The gap between consumption and production is made up by imports and 5 multinational firms control the flow of more than 80% of the global banana trade. Given this firm dominance in the world trade of bananas, oligopoly theory would suggest the presence of underlying structural forces that could facilitate price-enhancing market power. As such, this study develops an integrated trade and new empirical industrial organization (NEIO) …