AN ECONOMETRIC ANALYSIS OF DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA

Abstract

This study analyzes the structure of Korean meat and fish product demand. The Linear Approximate Almost Ideal Demand System (LA/AIDS) is used to estimate Korean meat and fish demand. Since the expenditure term is endogenous, the three-stage least squares (3SLS) estimator is used to estimate the demand system. Empirical results indicate that beef imports would increase with increases in per capita income. If imported beef becomes less expensive as a result of the trade liberalization policy adopted by the Korean government, Hanwoo beef would not be competitive and could lose its market share. Pork and chicken would be able to maintain market shares, but most fish products would lose market shares.demand, almost ideal demand system, meat, fish, endogeneity, Rotterdam model, separabiilty, estimator, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,