An Error Correction Almost Ideal Demand System for Import Meat in China
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- Error Correction Almost Ideal Demand System, Imported meat products, China
- Zhang, Haifeng; Li, Yuzhi; Wang, Jun; HuiwuGuo, ; Wan, Lu
- This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. CC BY-NC-SA 4.0 Creative Commons License: https://creativecommons.org/licenses/by-nc-sa/4.0/
- The purpose of this study is to determine the relationship between the price and the demand for imported meat products and suggest the marketing strategies for imported meat in China. This study presented a dynamic specification of the Almost Ideal Demand System (AIDS) based on co-integration techniques and error correction models. Results indicate that import of meat products in China was dictated by the relationship between the price and the import budget. Chilled or frozen pig meat (PC), chicken meat (CM) and chilled or frozen cattle meat (CC) are price sensitive imported products, and will face competition with domestic meat products. Keeping price low is the most important strategy for increasing market share for imported PC, CM and CC in China. This study is the first one to quantify the demand of imported meat in China by using the Error Correction Almost Ideal Demand System. Findings of this study have imperative implications that help Chinese government make policies for meat import, and provide agribusiness firms robust suggestions of marketing strategies for imported meat products.
Full text: IJRAS-341_Final.pdf