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Source Differentiated Pork Import Demand for South Korea: Implications to Canadian Exports
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- Author(s) / Creator(s)
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This study uses the Quadratic Almost Ideal Demand System model to estimate pork import demand in South Korea with the focus on implications to Canadian exports. Pork is highly prized in Asian cuisines, especially in South Korea due to its delicate fat content and texture. South Korea has a limited domestic pork production capability but faces a continuous rise in pork demand which makes importing inevitable. This study contributes to the current demand analysis literature in several ways: 1) the AIDS model is estimated in quadratic form to ensure a better consistency rather than linearizing the model with a price index; 2) the selected trade data ranges from 2013-2019 which provides an updated estimation from previous literature on South Korea’s import demand on source differentiated pork; 3) the findings suggest that pork trade in South Korea is highly competitive but Canada is not well-positioned to capture future market growth. South Korea’s unique preference for fatter pork might explain Canadian pork exporters’ lack of competitiveness. Expenditure and price elasticities indicate that Canadian pork is the most inelastic and has the least to gain from an expansion in South Korea’s pork expenditures and competitions mainly are from the U.S., Germany, and Netherlands. Although considered minor, both time trend and seasonality are shown to have a significant effect in determining Canadian pork exports to South Korea.
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- Date created
- 2021-01-01
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- Subjects / Keywords
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- Type of Item
- Report