The Structure of International Demand for Soybean Products

Dale Heien and Daniel Pick

Journal of Agricultural and Applied Economics, 1991, vol. 23, issue 1, 137-146

Abstract: This study used a new body of quarterly data to estimate multilateral import demand relations for soybeans and soymeal. The countries of origin were the United States, Brazil, and Argentina. The areas of destination were the EEC, Japan, and Eastern Europe. The results indicated that own- and cross-price elasticities were quite large. These demand relations were then inverted and solved for prices to examine the effect on total revenue of increases in supplies from each of the exporting countries. Results showed that, in all cases except one, own-total revenue was inflexible with respect to increase in the own-quantity supplied. These results imply that an increase in exports will be associated with smaller proportional increase in revenue from exports.

Date: 1991
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Journal Article: THE STRUCTURE OF INTERNATIONAL DEMAND FOR SOYBEAN PRODUCTS (1991)
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