An analysis of shrimp demand in Indonesia.
1985
Supardan A.
Statistical demand for domestic consumption and for exports were formulated using Ordinary Least Squares estimation techniques. All equations were expressed in logarithmic form. The specification of the models took into account the effect of commodity prices, the prices of substitute commodities, and income per capita both in Indonesia and Japan. The data used in the analysis cover the period 1968-1980 and were expressed on an annual basis. The results revealed the domestic demand was dependent on the price of fish, shrimps and by the capita income. The value of the estimated own-price, cross price, and income elasticities were - 0.15, - 0.189, and 0.27 respectively. The export demand for shrimp to Japan was significantly influenced by the price of shrimp, fish, and chicken, and by the per capita income of Japanese people. The estimated elasticity value of coefficient of demand with respect to these variables were - 0.21, 0.31, - 0.18, and 0.40, respectively. The study also found that, with the high estimation, domestic consumption of shrimp would increase by an average rate of 4.2 percent annually, or by 3.3 percent per year with the medium estimation rate. Based on the above findings, this study recommends an increasing government target for shrimp production of at least 5 percent over the old target in 1988, extending Indonesia's shrimp markets beyond Japan, and an improvement in data collection system of fisheries.
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