Import Demand for Quality in the Japanese Beef Market

Dragan Miljkovic and Hyun Jin
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Dragan Miljkovic: North Dakota State University
Hyun Jin: Chung-Ang University

Agricultural and Resource Economics Review, 2006, vol. 35, issue 2, pages 276-284

Abstract: The case of reduction in ad valorem tariffs as a trade liberalization policy is considered in this article. It is shown that the reduction leads to a higher quality of imports, ceteris paribus. This hypothesis was tested on the case of Japanese beef imports from the United States and Austra-lia. U.S. beef, according to the results of Gallup surveys, is considered by Japanese consumers to be a high quality product, while Australian beef is considered to be a low quality product. Empirical results support the hypothesis. Moreover, the recent domination of U.S. beef in the Japanese market is further explained by increasingly more efficient U.S. beef production rela-tive to Australian production and a strong income effect, where an increase in per capita in-come leads to more demand for higher quality products.

Keywords: ad valorem tariff; beef imports; Japan; quality; trade liberalization (search for similar items in EconPapers)

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