Estimates and Determinants of Armington Elasticities for the U.S. Food Industry
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Elena Lopez
Elena Lopez is a retired Associate Professor at the University of Alcalá, in Madrid, Spain. She received a BA in Economics from the Universidad Autonóma of Madrid (Spain), an MS from The Ohio State University and a Ph.D. from the University of Florida. She has published articles in a variety of scholarly journals on issues of international trade, demand theory and industrial organization.
and
Emilio Pagoulatos
Emilio Pagoulatos is an Emeritus Professor at the Department of Agricultural and Resource Economics at the University of Connecticut. His academic training includes a Doctorate in Economics from the University of Rome and a Ph.D. in Economics from Iowa State University. He has been a Professor at the University of Missouri, the University of Florida, and the University of Nebraska and his research is concentrated in the areas of international agricultural trade and the industrial organization and trade of the food system.
Abstract
This paper provides estimates of elasticities of substitution between domestic and imported goods for 40 4-digit S.I.C. food manufacturing industries and explains the inter-industry differences among these coefficients in terms of industry sectoral characteristics. The results show that there is a wide range of variation among such elasticities and that the intensity of each industry’s percentage of output sold to final consumers, foreign direct investment, expenditures on advertising and the existence of import quotas affect the degree of substitutability between domestic and foreign goods in the face of a relative price change.
Article Notes
This article was originally published 2002 in the Journal of Industry, Competition and Trade, Vol. 2/3, 247–258.
About the authors
Elena Lopez is a retired Associate Professor at the University of Alcalá, in Madrid, Spain. She received a BA in Economics from the Universidad Autonóma of Madrid (Spain), an MS from The Ohio State University and a Ph.D. from the University of Florida. She has published articles in a variety of scholarly journals on issues of international trade, demand theory and industrial organization.
Emilio Pagoulatos is an Emeritus Professor at the Department of Agricultural and Resource Economics at the University of Connecticut. His academic training includes a Doctorate in Economics from the University of Rome and a Ph.D. in Economics from Iowa State University. He has been a Professor at the University of Missouri, the University of Florida, and the University of Nebraska and his research is concentrated in the areas of international agricultural trade and the industrial organization and trade of the food system.
Acknowledgements
The authors wish to express their gratitude to Ibrahima Hathie for providing them with some of the data needed for this study and to Professor Rigoberto López for both data and, in particular, for his helpful comments. Elena Lopez gratefully acknowledges financial support for her research from the Catedras del Banco Santander Central Hispano-Universwidad de Alcalá.
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© 2003 Kluwer Academic Publishers
Articles in the same Issue
- Introduction to the Special Issue in Honor of Professor Emilio Pagoulatos
- Reprinted Articles
- What Determines the Elasticity of Industry Demand?
- Estimates and Determinants of Armington Elasticities for the U.S. Food Industry
- Articles
- A Re-Examination of Multistage Economies in Hog Farming
- Are Online and Offline Advertising Substitutes or Complements? Evidence from U.S. Food Industries
- Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries
Articles in the same Issue
- Introduction to the Special Issue in Honor of Professor Emilio Pagoulatos
- Reprinted Articles
- What Determines the Elasticity of Industry Demand?
- Estimates and Determinants of Armington Elasticities for the U.S. Food Industry
- Articles
- A Re-Examination of Multistage Economies in Hog Farming
- Are Online and Offline Advertising Substitutes or Complements? Evidence from U.S. Food Industries
- Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries
