IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/348953.html
   My bibliography  Save this article

Analyzing Meat and Seafood Import Demand in Trinidad and Tobago Using the Linear Approximate Almost Ideal Demand System Model

Author

Listed:
  • Forgenie, David
  • Hutchinson, Sharon D.
  • Khoiriyah, Nikmatul
  • Mahase-Forgenie, Meera

Abstract

A linear approximated almost ideal demand system model is specified to estimate imported meat and seafood demand in Trinidad and Tobago for the period 1976 to 2019 using annual data. Model parameters were estimated using seemingly unrelated regression with theoretical restrictions imposed. The results found that own-price of imported poultry and seafood negatively affected import expenditure share while own-price positively affected import expenditure share for imported beef, pork, and mutton. In addition, income negatively affected the import expenditure share of imported beef but positively affected the import expenditure share of imported pork, poultry, seafood, and mutton over the study period. Expenditure elasticity for imported meats and seafood reveals that they are all normal goods. Imported beef, pork, poultry, seafood, and mutton had expenditure elasticities of 0.57, 1.13, 1.94, 1.12, and 1.05, respectively. Imported pork, poultry, seafood, and mutton were found to be luxuries with income-elastic import demand. Own-price elasticities reveal that imported poultry was the most import elastic with an own-price elasticity of 1.40, followed by imported seafood (1.22), beef (0.65), mutton (0.54), and pork (0.48). Cross-price elasticities revealed that various complementary and substitution relationships existed among imported meats and seafood over the study period. Hicksian cross-price elasticities showed that mostly substitution relationships existed between various pairs of imported meats and seafood. The study also highlighted some policy recommendations that can be derived from the results.

Suggested Citation

  • Forgenie, David & Hutchinson, Sharon D. & Khoiriyah, Nikmatul & Mahase-Forgenie, Meera, 2023. "Analyzing Meat and Seafood Import Demand in Trinidad and Tobago Using the Linear Approximate Almost Ideal Demand System Model," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 15(4), December.
    • Handle: RePEc:ags:aolpei:348953
    DOI: 10.22004/ag.econ.348953
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/348953/files/594_agris-on-line-4-2023-forgenie-hutchinson-khoiriyah-mahase-forgenie.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.348953?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Taljaard, Pieter R. & van Schalkwyk, Herman D. & Alemu, Zerihun Gudeta, 2006. "Choosing between the AIDS and Rotterdam models: A meat demand analysis case study," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(2), pages 1-15, June.
    2. repec:uii:journl:v:10:y:2018:i:2:p:188-204 is not listed on IDEAS
    3. Henneberry, Shida Rastegari & Hwang, Seong-huyk, 2007. "Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 47-60, April.
    4. Zhou, Xia “Vivian”, 2015. "Using Almost Ideal Demand System To Analyze Demand For Shrimp In Us Food Market," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(3), pages 1-16, July.
    5. Mina Hejazi & Mary A. Marchant & Jue Zhu & Xin Ning, 2019. "The decline of U.S. export competitiveness in the Chinese meat import market," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 114-126, January.
    6. Rathnayaka, Shashika D. & Selvanathan, Saroja & Selvanathan, E.A. & Kler, Parvinder, 2019. "Modelling Sri Lankan consumption patterns using error corrected LA-AIDS," Economic Modelling, Elsevier, vol. 80(C), pages 185-191.
    7. Eales, James S. & Unnevehr, Laurian J., 1994. "The inverse almost ideal demand system," European Economic Review, Elsevier, vol. 38(1), pages 101-115, January.
    8. 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.
    9. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    10. William A. Barnett & Ousmane Seck, 2008. "Rotterdam model versus almost ideal demand system: will the best specification please stand up?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 795-824.
    11. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    12. Julian M. Alston & James A. Chalfant, 1993. "The Silence of the Lambdas: A Test of the Almost Ideal and Rotterdam Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 304-313.
    13. Taljaard, Pieter R. & Alemu, Zerihun Gudeta & van Schalkwyk, Herman D., 2004. "The demand for meat in South Africa: An almost ideal estimation," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(4), pages 1-14, December.
    14. Elham Pourmokhtar & Reza Moghaddasi & Amir Mohammad Nejad & Seyed Safdar Hosseini, 2018. "Meat demand model in Iran: a restricted source-differentiated almost ideal demand system approach," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 194-204.
    15. Henneberry, Shida Rastegari & Hwang, Seonghuyk, 2007. "Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(01), pages 1-14, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shashika D. Rathnayaka & Saroja Selvanathan & E. A. Selvanathan, 2021. "Demand for animal‐derived food in selected Asian countries: A system‐wide analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 97-122, January.
    2. Khoiriyah, Nikmatul & Forgenie, David & Iriany, Atiek, 2023. "Estimating Household Price and Income Elasticities for Animal-Sourced Food: The Case of Bengkulu Province, Indonesia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 15(3), September.
    3. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    4. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(02), pages 1-16, June.
    5. Coulibaly, Jeanne Y. & Tebila, Nakelse & Diagne, Aliou, 2015. "Reducing Rice Imports in Côte d'Ivoire: Is a Rise in Import Tariff the Solution?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 195-213, December.
    6. Sean Pascoe & Peggy Schrobback & Eriko Hoshino & Robert Curtotti, 2023. "Impact of changes in imports and farmed salmon on wild-caught fish prices in Australia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 335-359.
    7. Coulibaly, Jeanne Y., 2013. "Do Source and Quality matter in the Demand for Imported Rice in Côte d’Ivoire?," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161266, African Association of Agricultural Economists (AAAE).
    8. Holt, Matthew T., 2002. "Inverse demand systems and choice of functional form," European Economic Review, Elsevier, vol. 46(1), pages 117-142, January.
    9. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Yeboah, Osei Agyemang & Naanwaab, Cephas B. & Otchere, Richmond, 2015. "Demand for Beef Associated with Country of Origin Labeling," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196859, Southern Agricultural Economics Association.
    11. William A. Barnett & Isaac Kalonda Kanyama, 2013. "Time-varying parameters in the almost ideal demand system and the Rotterdam model: will the best specification please stand up?," Applied Economics, Taylor & Francis Journals, vol. 45(29), pages 4169-4183, October.
    12. Edgardo Ayala & Joana Chapa, 2017. "AH1N1 impact on the Mexican pork meat market," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 3-25.
    13. Sherafatmand, Habibeh & Baghestany, Ali Akbar, 2015. "Comparison of Rotterdam Model versus almost ideal demand system for fish and red meat," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 54(01), June.
    14. Brian J. Revell, 2015. "One Man's Meat … 2050? Ruminations on Future Meat Demand in the Context of Global Warming," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 573-614, September.
    15. Peguero, Felipe & Kennedy, P. Lynn & Zapata, Hector O., 2018. "A Generalized Dynamic Inverse AIDS Model for Fresh Fruits and Vegetables: An Application to the U.S. Bell Pepper Industry," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266686, Southern Agricultural Economics Association.
    16. Taljaard, Pieter R. & Alemu, Zerihun Gudeta & van Schalkwyk, Herman D., 2003. "A Linearized Almost Ideal Demand System (LA/AIDS) Estimation of the Demand for Meat in South Africa," 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa 19088, Agricultural Economics Association of South Africa (AEASA).
    17. Toshinobu Matsuda, 2005. "Differential Demand Systems: A Further Look at Barten's Synthesis," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 607-619, January.
    18. Dai, Yingchun & Tuan, Francis C. & Lin, William W. & Zhong, Funing & Chen, Xi, 2006. "How does Biotech Labeling Affect Consumers' Purchasing Behavior? A Case Study of Vegetable Oils in Nanjing, China," 2006 Annual meeting, July 23-26, Long Beach, CA 21235, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Shibia, Mumina & Rahman, Shaikh & Chidmi, Benaissa, 2017. "Consumer Demand For Meat In Kenya: An Examination Of The Linear Approximate Almost Ideal Demand System," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252789, Southern Agricultural Economics Association.
    20. Tsunehiro Otsuki, 2011. "Demand Response for Imported and Domestic Poultry Meat Products to Food Safety Regulations in Japan: An Application of the Almost Ideal Demand System Model," OSIPP Discussion Paper 11E007, Osaka School of International Public Policy, Osaka University.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:348953. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.