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The Effect of the 'Improper Solicitation and Graft Act' on Fruit Demand

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  • Kang, Minseong

Abstract

This study focused on the possibility that the Improper Solicitation and Graft Act may have caused a structural change in Korea’s fruit demand. We simulated the LA/IAIDS model using monthly data from 2000 to 2019 to analyze changes indomestic fruit demand caused by the enforcement of the law. According to the LA/IAIDS result, its implementation resulted in structural changes in apples and pears, decreasing own-price flexibility. The price volatility of apples and pears has also widened. Based on the results, this study concludes that policy enforcement has worsened domestic orchards’ management stability by inducing structural changes in demand for apples and pears.

Suggested Citation

  • Kang, Minseong, 2020. "The Effect of the 'Improper Solicitation and Graft Act' on Fruit Demand," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 43(4), December.
    • Handle: RePEc:ags:jordng:330803
    DOI: 10.22004/ag.econ.330803
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    File URL: https://ageconsearch.umn.edu/record/330803/files/RE43-4-03.pdf
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    Keywords

    Demand and Price Analysis;

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