An Analysis of the US Shrimp Market: A Mixed Demand Approach

This study examines the US demand for shrimp differentiated by source including eight import sources (China, Ecuador, India, Indonesia, Mexico, Thailand, Vietnam, and rest of world [ROW]) and three domestic sources (Gulf of Mexico landings by size category). Due to endogeneity of import quantities a...

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Bibliographic Details
Published in:Marine resource economics 2017-10, Vol.32 (4), p.411-429
Main Authors: Tabarestani, Maryam, Keithly, Walter R, Marzoughi-Ardakani, Hassan
Format: Article
Language:English
Subjects:
Decapoda
Demand
Economic analysis
Economic models
Imports
Landing statistics
mixed Rotterdam demand model
Price elasticity
shrimp
trade
Underwater resources
United States
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Summary:This study examines the US demand for shrimp differentiated by source including eight import sources (China, Ecuador, India, Indonesia, Mexico, Thailand, Vietnam, and rest of world [ROW]) and three domestic sources (Gulf of Mexico landings by size category). Due to endogeneity of import quantities and exogeneity of Gulf of Mexico landings, by size category, a mixed Rotterdam demand model was used to estimate the eleven-equation demand system. Results associated with the import component of the model appear satisfactory, with negative own-price elasticities and positive cross-price elasticities (implying substitutability among import sources). Many of the cross-price elasticities, however, were small. A 1% change in all import prices was found to result in a 0.98% change in the Gulf of Mexico dockside price; an expected result given the large share of total US shrimp supply represented by imports.
ISSN:0738-1360
2334-5985
DOI:10.1086/693360