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Cereal Import Demand in Developing Countries

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  • Veeman, Terrence S.
  • Sudol, Maxine
  • Veeman, Michele M.
  • Dong, Xiao-Yuan

Abstract

The major determinants of cereal import demand in 7 4 less-developed countries (LDCs) were analysed using an econometric cross-sectional model. Key explanatory factors included the level of income and degree of urbanization, financial capacity proxies, and domestic grain supply variables. A major innovation involved the analysis of the impact of income distribution on LDC cereal import demand in 1986 and 1987 for a more restricted sample of 23 nations. These~ developing countries exhibit a greater than proportional increase in cereal imports due to an increase in the income share of the poorest 40 percent of their populations. The inclusion of regional slope and intercept dummies in the cereal import demand model also provides improved results. High levels of government debt appear to have inhibited cereal imports in nations in South America but not in Asia and Africa. In all three continental regions, particularly Africa, there is a positive relationship between food aid and cereal imports. The model predicts cereal imports more satisfactorily for nations in Asia and South America than for those in Africa. Finally, the results support the view that improvements in income distribution in developing nations would considerably stimulate cereal imports.

Suggested Citation

  • Veeman, Terrence S. & Sudol, Maxine & Veeman, Michele M. & Dong, Xiao-Yuan, 1992. "Cereal Import Demand in Developing Countries," 1992 Occasional Paper Series No. 6 197886, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaaeo6:197886
    DOI: 10.22004/ag.econ.197886
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    References listed on IDEAS

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    1. Morrison, Thomas K., 1984. "Cereal imports by developing countries : Trends and determinants," Food Policy, Elsevier, vol. 9(1), pages 13-26, February.
    2. Huddleston, Barbara, 1984. "Closing the cereals gap with trade and food aid:," Research reports 43, International Food Policy Research Institute (IFPRI).
    3. Christiansen, Robert E., 1987. "The Impact Of Economic Development On Agricultural Trade Patterns," Staff Reports 277918, United States Department of Agriculture, Economic Research Service.
    4. Mellor, John W, 1988. "Food Demand in Developing Countries and the Transition of World Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 15(4), pages 419-436.
    5. Yotopoulos, Pan A, 1985. "Middle-Income Classes and Food Crises: The "New" Food-Feed Competition," Economic Development and Cultural Change, University of Chicago Press, vol. 33(3), pages 463-483, April.
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    Cited by:

    1. Veeman, Michele & Veeman, Terrence, 1992. "Export Markets for Canadian Grain: Trends and Market Mix," Staff Paper Series 232532, University of Alberta, Department of Resource Economics and Environmental Sociology.

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