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• 1. [Article] Non-Stationary Markov Process Analysis of the Size Distribution of Shrimp Processing Firms in the Southeast United States

  The shrimp harvesting sector is the largest component of the Southeastern United States fishing industry, accounting for 57% of the total value of landings in the region in 1996. U.S. shrimp imports were ...

  Citation × Citation Citation Abstract Copy Title: Non-Stationary Markov Process Analysis of the Size Distribution of Shrimp Processing Firms in the Southeast United States Author: Harrison, Wes R., Keithly, Walter R. "Jr", Diop, Hamady Year: 2001 The shrimp harvesting sector is the largest component of the Southeastern United States fishing industry, accounting for 57% of the total value of landings in the region in 1996. U.S. shrimp imports were valued at $2.6 billion in 1996. Together, domestic production and imports of raw products support a large shrimp processing sector, which provides several thousand jobs either directly or indirectly. In 1975 and 1984, the United States International Trade Commission investigated the shrimp industry to determine whether the volume of shrimp imports was high enough to threaten domestic firms which were producing articles similar to, or directly competitive with the imported products. In both studies, the commission concluded that no harm was done to the processing sector. However, an analysis of the shrimp processing sector revealed that imports did have a negative impact. The objective of this research is to examine the impact of shrimp processors performance (as measured by processor’s margins) on industry structure (as measured by the number of processing firms in activity) using a non-stationary Markov model. Results indicated significant margins changes on industry structure and size distribution. Specifically, the narrowing of processors’ margins due to increased shrimp imports impacted more the small size firms than the medium or large firms. Additionally, some shrimp processors (medium and large sizes) were able to remain in the industry by adjusting their input mixes. Title: Non-Stationary Markov Process Analysis of the Size Distribution of Shrimp Processing Firms in the Southeast United States Author: Harrison, Wes R., Keithly, Walter R. "Jr", Diop, Hamady Year: 2001 The shrimp harvesting sector is the largest component of the Southeastern United States fishing industry, accounting for 57% of the total value of landings in the region in 1996. U.S. shrimp imports were valued at $2.6 billion in 1996. Together, domestic production and imports of raw products support a large shrimp processing sector, which provides several thousand jobs either directly or indirectly. In 1975 and 1984, the United States International Trade Commission investigated the shrimp industry to determine whether the volume of shrimp imports was high enough to threaten domestic firms which were producing articles similar to, or directly competitive with the imported products. In both studies, the commission concluded that no harm was done to the processing sector. However, an analysis of the shrimp processing sector revealed that imports did have a negative impact. The objective of this research is to examine the impact of shrimp processors performance (as measured by processor’s margins) on industry structure (as measured by the number of processing firms in activity) using a non-stationary Markov model. Results indicated significant margins changes on industry structure and size distribution. Specifically, the narrowing of processors’ margins due to increased shrimp imports impacted more the small size firms than the medium or large firms. Additionally, some shrimp processors (medium and large sizes) were able to remain in the industry by adjusting their input mixes. Close

• 2. [Article] An Examination of the Shrimp Futures Market

  The only two seafood commodities traded in futures markets are frozen white and black tiger shrimps on the Minneapolis Grain Exchange (MGE). These two contracts, however, have failed to attract the expected ...

  Citation × Citation Citation Abstract Copy Title: An Examination of the Shrimp Futures Market Author: Martínez-Garmendia, Josué, Anderson, James L. Year: 2001 The only two seafood commodities traded in futures markets are frozen white and black tiger shrimps on the Minneapolis Grain Exchange (MGE). These two contracts, however, have failed to attract the expected trade volume based on the underlying shrimp cash market flow. First, we investigate the hedging effectiveness of these contracts. Then we also try to determine the adequacy of the premiums/discounts for non-par deliveries associated with the various shrimp size categories traded in each contract. Finally, we attempt to determine whether these contracts are unbiased predictors of cash market prices. The analyses indicate that the hedging effectiveness of both contracts is relatively modest. It is concluded that part of the explanation for the performance of the contracts resides in high deliverable category exchange option values, which stem from volatility in the price differentials between size categories. Results indicate ineffective premiums/discounts and poor predic tive ability of both contracts. Title: An Examination of the Shrimp Futures Market Author: Martínez-Garmendia, Josué, Anderson, James L. Year: 2001 The only two seafood commodities traded in futures markets are frozen white and black tiger shrimps on the Minneapolis Grain Exchange (MGE). These two contracts, however, have failed to attract the expected trade volume based on the underlying shrimp cash market flow. First, we investigate the hedging effectiveness of these contracts. Then we also try to determine the adequacy of the premiums/discounts for non-par deliveries associated with the various shrimp size categories traded in each contract. Finally, we attempt to determine whether these contracts are unbiased predictors of cash market prices. The analyses indicate that the hedging effectiveness of both contracts is relatively modest. It is concluded that part of the explanation for the performance of the contracts resides in high deliverable category exchange option values, which stem from volatility in the price differentials between size categories. Results indicate ineffective premiums/discounts and poor predic tive ability of both contracts. Close