|Authors: ||Y. Niisato, T. Takeda|
|Keywords: ||supply, demand, bulb price, export, import, consumption, tulip bulb|
In this paper we analyse some of the effects of Lehman shock on the flower bulb industry in 2008 in Japan and the Netherlands.
Lehman shock and the world credit crisis caused a recession in the global economy, including the agriculture and flower sectors.
Because the flower bulb sector in Japan had been stagnating before the shock, significant damage appears to have resulted from the recession, whereas the sector had been greatly damaged in the Netherlands; however, it appears to have made a prompt recovery.
We demonstrate economic models of standard international trade theory as an analytical framework.
A small country model is applied to represent the Japanese sector, whereas a two-country model is applied to represent the relationship between the Dutch and the American bulb industries.
We investigate some factors and influences affecting both countries.
In particular, we perform an in-depth analysis of the influence on the Japanese tulip bulb industry.
We conclude that the Dutch bulb industry had been greatly affected by the Lehman shock; however, it has made a prompt recover, whereas the Japanese industry was affected by the shock is yet to recover.
Dutch bulbs are globally sold, including Brazil, Russia, India and China, which are BRICs countries with rapidly growing countries.
The protracted stagnation of the Japanese bulb industry has resulted in fundamental and long-term problems, including high cost and small-scale bulb production, low income of rice production and a change in consumer flower preference.
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