The Effects of Mango Imports on the Domestic Fruit Demand
2018
Cho, J.H., Pusan National University, Busan, Republic of Korea
The purpose of this study is to analyse the effects of mongo imports on the domestic fruits demand with the differenced LA/AIDS. For the demand for imported mango, its own price elasticity (-1.22) and expenditure elasticity (1.26) are very elastic. Therefore, the tariff reduction according to FTA schedules is expected to increase rapidly imported mango demand with the increase of national income. On the other hand, the impact on domestic fruits demand is expected to be insignificant except domestic mongo demand. Meanwhile, from 2012 to 2017, domestic mango demand rose 9.95% annually due to its own price reduction with national income increase. Therefore, the efforts to decrease production costs and differentiate quality will be important in order to increase domestic mango demand steadily.
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