HARD CURRENCY CONSTRAINTS AND EAST EUROPEAN GRAIN IMPORTS

Nancy Cochrane

No 278009, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: A four-equation model was estimated to evaluate the response of Eastern European grain import demand and livestock production to foreign exchange availability. The results suggest that despite the rigidities of central planning, production and trade plans in a centrally planned economy (CPE) car be altered fairly rapidly in response to changes in world conditions. While it is often assumed that CPE imports are insensitive to wce ld prices, estimation of the model shows coarse grain imports to have a price elasticity between zero and unity. Wheat imports, however, are price inelastic. Both wheat and coarse grain imports, and consequently livestock production, turn out to be highly sensitive to fluctuations in foreign exchange availability.

Keywords: Crop Production/Industries; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 25
Date: 1988-03
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:278009

DOI: 10.22004/ag.econ.278009

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