MARKET SEGMENTATION: IDENTIFYING THE HIGH-GROWTH EXPORT MARKETS FOR U.S. AGRICULTURE

Abstract

A cluster analysis based on a five-year growth rate of agricultural imports from the United States was conducted on 86 countries and revealed two significant market segments for U.S. agriculture: the high-growth markets and the low-growth markets. Multiple discriminant analysis was then used to test the significance of the countries' trade-related and macroeconomic variables to their market growth classification. The discriminant function was used to predict the high-growth markets for U.S. agriculture in 1994. High-growth markets for U.S. agriculture exhibit faster GDP and agricultural import growth rates, are relatively agriculturally self-sufficient, and are near the United States. On the other hand, low-growth markets exhibit slower GDP and agricultural import growth rates, and are geographically distant from the United States.International Relations/Trade,