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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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  • 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

Suggested Citation

  • Nzaku, Kilungu & Houston, Jack E. & Fonsah, Esendugue Greg, 2012. "A Dynamic Application of the AIDS Model to Import Demand for Tropical Fresh Fruits in the USA," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126721, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126721
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    References listed on IDEAS

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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.

    More about this item

    Keywords

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

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