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Japanese beef trade impact from BSE using a time‐varying Armington model

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  • Byung Min Soon
  • Wyatt Thompson

Abstract

This study examines the persistent impacts of the bovine spongiform encephalopathy (BSE) outbreak in the United States on Japanese beef demands. An Armington model with time‐varying parameters allows us to separate BSE effects from other factors. A counter‐factual case estimates that, if the BSE outbreak had not occurred, demand for Australian beef would have been lower and demand for U.S. beef would have been higher, with domestic beef demand only modestly affected. The BSE outbreak affected imported frozen beef demands more than imported chilled beef demands. Our estimation method is relevant for researchers studying the impacts of disease‐related or other trade disruptions, as well as to traders and policy makers with interest in Japanese beef markets. [EconLit citations: F14, Q17].

Suggested Citation

  • Byung Min Soon & Wyatt Thompson, 2020. "Japanese beef trade impact from BSE using a time‐varying Armington model," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 385-401, June.
    • Handle: RePEc:wly:agribz:v:36:y:2020:i:3:p:385-401
    DOI: 10.1002/agr.21631
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    References listed on IDEAS

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    5. Shigekazu Kawashima & Deffi Ayu Puspito Sari, 2010. "Time-varying Armington elasticity and country-of-origin bias: from the dynamic perspective of the Japanese demand for beef imports," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 27-41, January.
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    9. Kawashima, Shigekazu & Sari, Deffi Ayu Puspito, 2010. "Time-varying Armington elasticity and country-of-origin bias: from the dynamic perspective of the Japanese demand for beef imports," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 1-15.
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    Cited by:

    1. de Menezes, Taís C. & Countryman, Amanda M. & Hagerman, Amy D. & Galvão de Miranda, Sílvia H., . "Economy-Wide Effects of Bovine Spongiform Encephalopathy in Brazil," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(3).

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