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Import Demand For Malt: A Times Series And Econometric Analysis

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Author Info

  • Satyanarayana, Vidyashankara
  • Wilson, William W.
  • Johnson, D. Demcey

Abstract

European Union (EU) dominance of the world malt trade is thought to be due to quality advantages and/or due to export restitutions. A Linear Approximate Almost Ideal Demand System (LA/AIDS) was estimated for four major malt importing countries: Japan, Brazil, Philippines, and Venezuela. Elasticities of substitution for malt among different sources were computed. Results show that malt imported from the EU is least substitutable with malt from other sources, and demand for EU malt is less responsive to changes in price. Expenditure elasticities indicate that the four importers spend proportionately more on malt imports from the EU compared to malt from other sources. For these reasons, the study concludes that price subsidy-based export expansion measures for non-EU malt may have limited effects.

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File URL: http://purl.umn.edu/23343
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Bibliographic Info

Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agricultural Economics Reports with number 23343.

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Date of creation: 1997
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Handle: RePEc:ags:nddaer:23343

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Keywords: Malt Import Demand; LA/AIDS; Export Subsidy; Substitutability; International Relations/Trade;

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  1. Wilson, William W. & Johnson, D. Demcey, 1995. "North American Malting Barley Trade: Impacts of Differences in Quality and Marketing Costs," Agricultural Economics Reports 23128, North Dakota State University, Department of Agribusiness and Applied Economics.
  2. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  3. Edgerton, David L., 1993. "On The Estimation Of Separable Demand Models," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December.
  4. LaFrance, Jeffrey T., 1991. "When Is Expenditure "Exogenous" In Separable Demand Models?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), July.
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