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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
    DOI: 10.22004/ag.econ.126721
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    References listed on IDEAS

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    2. Rodrigo García Arancibia & Edith Depetris Guiguet, 2020. "Brazilian Import Demand of Dairy Products with Emphasis in the Mercosul Context [Demanda brasileira de importações de laticínios com ênfase no contexo do Mercosul]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(2), pages 551-577, May-Augus.
    3. Rodrigo Garc?a Arancibia, 2019. "Import Demand for Dairy Products in Chile and Competition among Exporting Countries: The Case of Milk Powder and Cheese," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(1), pages 101-128.
    4. 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.
    5. Alessandro De Matteis & Fethiye Burcu Turkmen Ceylan & Bereket Kebede, 2021. "Market resilience in times of crisis: The case of Darfur," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1107-1127, August.

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    Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods;

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