Analyzing Meat and Seafood Import Demand in Trinidad and Tobago Using the Linear Approximate Almost Ideal Demand System Model
DOI:
https://doi.org/10.7160/aol.2023.150403How to Cite
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.References
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