Competition in the International Niobium Market: An Econometric Study

30 Pages Posted: 5 Dec 2017

See all articles by Jailison W. Silveira

Jailison W. Silveira

Ministry of Finance, Brazil

Marcelo Resende

Universidade Federal do Rio de Janeiro (UFRJ); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: November 06, 2017

Abstract

Niobium is a highly strategic mineral, in which Brazil holds almost all of the world’s reserves followed by Canada. Niobium has an important role in steel alloys for the aerospace industry and future potential for the industry’s superconductors. The present paper investigates the prevailing market power in niobium at the country level by referencing the residual demand approach advanced by Goldberg and Knetter (1999). The empirical evidence for the American destination market indicates a significant market power for Brazil. However, despite Brazil’s strong dominance in the supply of ferroniobium in comparison to Canada, it has moderate market power, which may suggest that other metals can have a relevant role in composing high performance alloys in terms of complementarity or substitution relationships.

Keywords: Niobium, residual demand, market power

JEL Classification: F140, L130, L610

Suggested Citation

Silveira, Jailison W. and Resende, Marcelo, Competition in the International Niobium Market: An Econometric Study (November 06, 2017). CESifo Working Paper Series No. 6715, Available at SSRN: https://ssrn.com/abstract=3082075

Jailison W. Silveira

Ministry of Finance, Brazil ( email )

Rio de Janeiro
Brazil

Marcelo Resende (Contact Author)

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Instituto de Economia
Rio de Janeiro RJ 21949
Brazil

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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