Competiveness of Latin American Exports in the U.S. Banana Market

Andrew Muhammad, Esendugue Fonsah () and Steven Zahniser

No 98365, 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas from Southern Agricultural Economics Association

Abstract: U.S. banana demand differentiated by country of origin is estimated using the generalized dynamic Rotterdam model. Results indicate that dynamic factors play a significant role in determining the allocation of U.S. banana expenditures across exporting sources. Of particular interest is Guatemala’s increased share and Costa Rica’s decreased share of U.S. banana supply. A number of factors explained why Guatemala replaced Costa Rica as the leading U.S. supplier in 2007. (1) Guatemala is the least expensive source on average. (2) Habit persistence, adjustment costs, and other dynamic factors favor Guatemala’s exports. (3) Given increases in the relative price of Costa Rica’s bananas, the price competition between Costa Rica and Guatemala is highly significant. (4) Bananas from Costa Rica are highly responsive to own-price while imports from Guatemala are more price-inelastic. (5) Heavy rains and fluctuating temperatures in Costa Rica have decreased banana production and exports.

Keywords: Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 30
Date: 2011
New Economics Papers: this item is included in nep-agr, nep-com and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/98365/files/ba ... per%20_szam_2011.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:saea11:98365

DOI: 10.22004/ag.econ.98365

Access Statistics for this paper

More papers in 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas from Southern Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().