Associate Professor - Campus Bergen
Department of Economics
Oglend, Atle & Straume, Hans-Martin (2020)
Futures market hedging efficiency in a new futures exchange: Effects of trade partner diversification
Journal of futures markets, 40(4), s. 617- 631. Doi: 10.1002/fut.22088
This paper uses transaction data to examine hedging efficiency in a new futures exchange; the Fish Pool salmon futures exchange in Norway. The paper utilizes data on firm‐level exporter/importer transaction prices to quantify firm‐level futures hedging efficiency. This allows us to address heterogeneity in hedging efficiency and basis risk at the firm level. The main result of this paper shows that larger firms with greater trade partner diversification have lower basis risk. Such firms align their internal transaction price closer to the common spot price in the market, which encourages greater futures market participation. Results are discussed in light of recent declines in participation in the salmon futures exchange.
Gaasland, Ivar; Straume, Hans-Martin & Vårdal, Erling (2020)
Agglomeration and trade performance – evidence from the Norwegian salmon aquaculture industry
Aquaculture Economics & Management Doi: 10.1080/13657305.2019.1708995
Geographical concentration of industries tends to be important for firms that depend on innovation and are intensive in the use of specialized technology and labor. In this paper, we investigate the interaction between agglomeration and trade performance in the Norwegian aquaculture industry. We include a variable for regional clustering in a standard gravity model and estimate its impact on different margins of trade. When controlling for destination country, we find that firms that operate in clusters obtain higher export prices and ship more frequently and in smaller bulks. For a highly perishable product like fresh salmon, this may suggest that firms in clusters are served by more efficient supply chains bringing the product to market with timely and efficient logistics.
Straume, Hans-Martin; Landazuri-Tveteraas, Ursula Alejandra & Oglend, Atle (2019)
Insights from transaction data: Norwegian aquaculture exports
This paper discusses how transaction data can be used to shed light on trade dynamics in seafood exports, with Norwegian salmon exports as the case. There is a large literature on exports and imports of salmon between countries, but less is known about how the heterogeneity of exporters and importers relates to the aggregate data. We utilize transaction data for all exports of salmon in the period 2010–2014 and show that firms involved in salmon exports holds several of the characteristics that are commonly found in the international trade literature, but differs in some important dimensions. Most exporters of salmon connect to relatively many importers and serve many different destination markets. Short-lived trade relations are shown to account for a large share of export values.
Oglend, Atle & Straume, Hans-Martin (2019)
Pricing efficiency across destination markets for Norwegian salmon exports
Aquaculture Economics & Management, 23(2), s. 188- 203. Doi: 10.1080/13657305.2018.1554722
This paper investigates how pricing efficiency of Norwegian salmon exports varies across destination market characteristics. Efficiency is defined as the rate at which individual transaction prices adjust to common market information, and is estimated by dynamic fixed effects panel models with parameters conditional on trade attributes using micro-level trade data. Our results show that contract type (Incoterms) used in transactions can be used to segment the Norwegian export markets into three types: (1) high-value trade to large distant markets, (2) medium-value trade to close high-income markets, and (3) lower-value large bulk trades to lower-income close markets. We find that pricing efficiency is lowest for committed trades over long distance using planes, and highest for less committed large bulk trades to close markets. Despite significant heterogeneity, the majority of salmon price variation (around ¾) is common, providing a clear justification for the representativeness of a salmon price index.
Asche, Frank; Gaasland, Ivar, Straume, Hans-Martin & Vårdal, Erling (2019)
Norwegian export of farmed salmon − trade costs and market concentration
While variation in unit value most commonly has been associated with quality in the trade literature, observed differences in prices between markets might also be explained by variation in market concentration and the degree of competition. Using transaction data on Norwegian exports of salmon, we introduce a Herfindahl index as a measure of competition in a standard gravity model. We find that competition typically is weaker in small and distant markets that due to high trade costs are served by relatively few firms. We argue that the anti-competitive impact of trade costs may explain price differentiation between markets even for homogeneous products.
Cojocaru, Andreea-Laura; Asche, Frank, Pincinato, Ruth Beatriz & Straume, Hans-Martin (2019)
Where are the fish landed? An analysis of landing plants in Norway
A vast literature in fisheries economics focuses on drivers of fishers’ behavior with limited attention given to what happens once the fish are landed. This often strongly contrasts with a main policy focus on coastal communities, with fisheries management as an additional instrument in supporting livelihoods. This study shows that the number of Norwegian landing plants has been reduced in recent decades, and that quantity landed, annual plant operation time, and attracting smaller vessels decrease the probability of exit. Interestingly, plants in communities with additional landing locations have lower probabilities of exit, pointing to an industry cluster effect
Asche, Frank; Cojocaru, Andreea-Laura, Gaasland, Ivar & Straume, Hans-Martin (2018)
Cod stories: Trade dynamics and duration for Norwegian cod exports
Journal of Commodity Markets Doi: 10.1016/j.jcomm.2017.12.002
In recent years, trade dynamics have been receiving increased attention, and the general literature indicates that commodities are different. In this paper, the duration of trade relationships for Norwegian export firms to various markets is investigated for six product forms of one commodity, cod. The results indicate that the duration of most trade relationships is very short, and shorter than what is normally reported in the literature. Still, the substantial variation in duration by product form and factors influencing it, indicates heterogeneous dynamics for each supply chain even for slight differences in the characteristics of a commodity. Moreover, the short duration of trade relationships in the supply chains for Norwegian cod indicates that they remain very traditional food supply chains, with few attempts at reducing transaction costs through vertical coordination or relationships.
Straume, Hans-Martin (2017)
Here today, gone tomorrow: The duration of Norwegian salmon exports
Aquaculture Economics & Management, 21(1), s. 88- 104. Doi: 10.1080/13657305.2017.1262477
Success in the export markets is not only about entry into markets, but also about survival and export growth. General empirical evidence suggests that high export growth is positively associated with the duration of trade relationships. For exporters of highly perishable goods such as fresh salmon, efficient trade relations are important to prevent loss of product quality as time from harvest to final consumption increases. This research analyzes the duration of trade relationships for Norwegian salmon exports. Using highly disaggregated data for the 1999–2009 period, the trade relations for exports of fresh-farmed salmon from Norway are remarkably short. At the firm-to-country level the mean duration is 4 years, Furthermore, the degree of dynamics increases as the data becomes more disaggregated. Market uncertainty in the form of transportation costs and export to countries in the EU are associated with a larger probability for failure. Factors that are associated with a reduced risk of exiting the market are the size of the initial shipment between the trading partners, continuing large shipments and the size of the exporting firm.
Straume, Hans-Martin (2014)
Currency invoicing in Norwegian salmon export
Straume, Hans-Martin & Vårdal, Erling (2009)
Finanskrisens innvirkning på valutamarkedene
Samfunnsøkonomen, 63(4), s. 60- 68.
Straume, Hans-martin & Vårdal, Erling (2009)
Finanskrisens innvirkning på valutamarkedene
Samfunnsøkonomen, 69(4), s. 60- 68.
Januleviciute, Jurgita; Straume, Hans-Martin & Vårdal, Erling (2008)
Effekten av en nasjons valutavalg på utenrikshandelen
Norsk økonomisk tidsskrift, 122(2), s. 36- 50.
Straume, Hans-Martin; Vårdal, Erling & Asche, Frank (2018)
TRADE MARGINS FOR NORWEGIAN SEAFOOD EXPORTS
[Academic lecture]. Aquaculture 2018.
Straume, Hans-Martin; Asche, Frank & Vårdal, Erling (2017)
Perish or prosper: Trade patterns for highly perishable products
[Academic lecture]. EAAE 2017.
Straume, Hans-Martin (2016)
Trade costs and Norwegian salmon export
[Academic lecture]. Forskermøtet 2016.
Straume, Hans-Martin (2016)
Trade duration for seafood
[Academic lecture]. Aquaculture 2016.
Straume, Hans-Martin (2015)
The performance of large versus specialized firms: A study of firms importing apples into Norway.
[Academic lecture]. The 30th Annual Congress of the European Economic Association.
Straume, Hans-Martin (2015)
Duration and Temporary Trade
[Academic lecture]. EAFE15.
|2015||University of Bergen||PhD|
|2005||University of Bergen||Master Cand. Oecon|
|2015 - Present||BI Norwegian Business School||Associate Professor|
|2005 - 2015||BI Norwegian Business School||Lecturer|
|2010 - 2014||University of Bergen/ BI||PhD candidate|
|2005 - 2009||Bergen University College||Lecturer|