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A Dynamic Application of the AIDS Model to Import Demand for Tropical Fresh Fruits in the USA

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Author Info

  • Nzaku, Kilungu
  • Houston, Jack E.
  • Fonsah, Esendugue Greg

Abstract

We estimate a dynamic version of an almost ideal demand system (AIDS) model for U.S.A. imports of fresh tropical fruits: bananas, pineapples, avocadoes, papayas, mangoes/guavas, grapes and other fresh fruit imports. An error correction model specification is justified after unit root and cointegration test results confirm nonstationarity and cointegration of the data. Estimated income elasticities show that fresh grapes and other fresh fruit imports appear to be considered luxury commodities. All own-price elasticities were negative and significant. While imported bananas, pineapples, U.S.A. grapes and other fresh fruit were quite inelastic, demand for papayas and mangoes/guavas were elastic. Fresh fruits that are shown to be complementary to imported fruits include bananas, imported grapes, U.S.A. grapes and avocados, and imported avocados/other fresh fruits. Key

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126721.

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Date of creation: 29 Jun 2012
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Handle: RePEc:ags:iaae12:126721

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Related research

Keywords: Tropical Fruits; Import Demand; Almost Ideal Demand Systems; Error Correction; Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods;

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References

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  1. Washington, Andrew A. & Kilmer, Richard L., 2000. "The Production Theory Approach To Import Demand Analysis: A Comparison Of The Rotterdam Model And The Differential Production Approach," 2000 Annual meeting, July 30-August 2, Tampa, FL 21829, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Amy L. Sparks, 1992. "A system-wide approach to import demand for US fresh oranges," Agribusiness, John Wiley & Sons, Ltd., vol. 8(3), pages 253-260.
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  5. Nzaku, Kilungu & Houston, Jack E., 2009. "Analysis of U.S. Demand for Fresh Tropical Fruit and Vegetable Imports," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46850, Southern Agricultural Economics Association.
  6. Andayani, Sri R.M. & Tilley, Daniel S., 1997. "Demand And Competition Among Supply Sources: The Indonesian Fruit Import Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December.
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  8. Schmitz, Troy G. & Seale, James L., Jr., 2002. "Import Demand For Disaggregated Fresh Fruits In Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(03), December.
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  11. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
  12. Karagiannis, G. & Katranidis, S. & Velentzas, K., 2000. "An error correction almost ideal demand system for meat in Greece," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 22(1), January.
  13. Fonsah, Esendugue Greg & Muhammad, Andrew, 2008. "The Demand for Imported Apple Juice in the United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 39(1), March.
  14. Kremers, Jeroen J M & Ericsson, Neil R & Dolado, Juan J, 1992. "The Power of Cointegration Tests," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 325-48, August.
  15. Arnade, Carlos & Pick, Daniel, 1998. "Seasonality and unit roots: the demand for fruits," Agricultural Economics, Blackwell, vol. 18(1), pages 53-62, January.
  16. Yang, Seung-Ryong & Koo, Won W., 1994. "Japanese Meat Import Demand Estimation With The Source Differentiated Aids Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
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  20. Arnade, Carlos & Pick, Daniel, 1998. "Seasonality and unit roots: the demand for fruits," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 18(1), January.
  21. Karagiannis, G. & Katranidis, S. & Velentzas, K., 2000. "An error correction almost ideal demand system for meat in Greece," Agricultural Economics, Blackwell, vol. 22(1), pages 29-35, January.
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Cited by:
  1. Wang, Xiaojin & Saghaian, Sayed H., 2012. "The Impact of the Melamine Scandal and other Factors Influencing China's Dairy Imports," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142742, Southern Agricultural Economics Association.
  2. Wang, Xiaojin & Reed, Michael, 2013. "Estimation of Import Demand for Fishery Products in the U.S. Using the Source-Differentiated AIDS Model," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150207, Agricultural and Applied Economics Association.

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