U.s. Demand for Fresh-fruit Imports

Document Type

Thesis

Degree Name

Master of Science (MS)

Department

Agricultural Sciences

Date of Award

Summer 2017

Abstract

With increasing fresh-fruit import dependence, it is important for the U.S. to analyze trends and future trade scenarios, and develop corresponding strategies to achieve economic efficiency in the international market. Estimation of import demand elasticities is an effective approach for building economic models and predicting possible development scenarios for international trade. This study employs two Source-Differentiated Almost Ideal Demand Systems (SDAIDS) to estimate the elasticities of demand for (1) mangoes and guavas, bananas, avocadoes and papayas imported from NAFTA, CAFTA-DR, and MERCOSUR; and (2) berries, apples, and avocadoes imported from Canada and Mexico. The results of this study suggest that for the study period from 2005 to 2015 all the selected fresh fruits were normal goods, with some of them being luxuries. The expected total impact of a 20% tariff on imports from Mexico was calculated, and the results showed that the U.S. monthly expenditure of fresh-fruit imports is expected to increase, on average, by $10.45 million, and the tariff revenue is expected to be, on average, $17.49 million.

Advisor

Jose A. Lopez

Subject Categories

Agricultural and Resource Economics | Agriculture | Life Sciences

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