Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply

This paper provides new evidence on income and price elasticities of demand and supply of agricultural exports from developing countries, on the basis of (a) a consistent and fully specified supply and demand model, and (b) statistical estimation procedures not frequently used in the estimation of a...

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Detalles Bibliográficos
Autores principales: Islam, Nurul, Subramanian, Arvind
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 1989
Materias:
Acceso en línea:https://hdl.handle.net/10568/170607
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author Islam, Nurul
Subramanian, Arvind
author_browse Islam, Nurul
Subramanian, Arvind
author_facet Islam, Nurul
Subramanian, Arvind
author_sort Islam, Nurul
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper provides new evidence on income and price elasticities of demand and supply of agricultural exports from developing countries, on the basis of (a) a consistent and fully specified supply and demand model, and (b) statistical estimation procedures not frequently used in the estimation of agricultural export functions. Estimates of price and income elasticities of demand for aggregate agricultural exports for all developing countries taken together — as distinct from individual exporting countries — are found to be low; moreover, export price as distinguished from non‐price factors plays a relatively insignificant role in increasing export supply. Hence, an attempt by all developing countries to expand traditional agricultural exports with low price elasticity of demand may not yield rising earnings for all; but in fact may result in falling export revenues. Insofar as individual exports of all developing countries (not individual countries) are concerned, income and price elasticities of demand for such tropical commodities as tea, coffee, cocoa and bananas are also found to be low, except for new, non‐traditional exports like pineapples. This indicates the importance of diversification of agricultural exports as a vehicle for their future growth.
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spelling CGSpace1706072025-01-29T12:57:08Z Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply Islam, Nurul Subramanian, Arvind agricultural trade economic aspects developing countries exports This paper provides new evidence on income and price elasticities of demand and supply of agricultural exports from developing countries, on the basis of (a) a consistent and fully specified supply and demand model, and (b) statistical estimation procedures not frequently used in the estimation of agricultural export functions. Estimates of price and income elasticities of demand for aggregate agricultural exports for all developing countries taken together — as distinct from individual exporting countries — are found to be low; moreover, export price as distinguished from non‐price factors plays a relatively insignificant role in increasing export supply. Hence, an attempt by all developing countries to expand traditional agricultural exports with low price elasticity of demand may not yield rising earnings for all; but in fact may result in falling export revenues. Insofar as individual exports of all developing countries (not individual countries) are concerned, income and price elasticities of demand for such tropical commodities as tea, coffee, cocoa and bananas are also found to be low, except for new, non‐traditional exports like pineapples. This indicates the importance of diversification of agricultural exports as a vehicle for their future growth. 1989-05 2025-01-29T12:57:08Z 2025-01-29T12:57:08Z Journal Article https://hdl.handle.net/10568/170607 en Limited Access Wiley Islam, Nurul; Subramanian, Arvind. 1989. Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply. Journal of Agricultural Economics 40(2): 221-231. https://doi.org/10.1111/j.1477-9552.1989.tb01101.x
spellingShingle agricultural trade
economic aspects
developing countries
exports
Islam, Nurul
Subramanian, Arvind
Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply
title Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply
title_full Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply
title_fullStr Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply
title_full_unstemmed Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply
title_short Agricultural exports of developing countries: estimates of income and price elasticities of demand and supply
title_sort agricultural exports of developing countries estimates of income and price elasticities of demand and supply
topic agricultural trade
economic aspects
developing countries
exports
url https://hdl.handle.net/10568/170607
work_keys_str_mv AT islamnurul agriculturalexportsofdevelopingcountriesestimatesofincomeandpriceelasticitiesofdemandandsupply
AT subramanianarvind agriculturalexportsofdevelopingcountriesestimatesofincomeandpriceelasticitiesofdemandandsupply