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An Approach to the Estimation of Import Price Elasticities by Supplier

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An approach to the estimation of import price elasticities by supplier was developed for the analysis of multilateral commodity flows, where the brevity of available annual time-series data and the lack of quarterly or monthly series precludes the direct application of more rigorous estimation procedures. Import demand functions were estimated for four commodities and four Western European and Asian countries to empirically evaluate the approach and to identify potential supplier differentiation in the market. Products considered included sulfate and sulfite pulp, and kraft paper and paperboard and paper and paperboard n.e.s. due to the relatively large number of suppliers of these products and the tendency of many importers to regularly purchase these products from a variety of suppliers. Importing countries considered included Italy, Japan, West Germany, and the United Kingdom due to their prominent market positions. Estimated differences in import price elasticities identified in 6 of the 16 models considered were relatively small in magnitude, but significantly different from one another, suggesting that some importers do differentiate among suppliers of selected forest products. For. Sci. 35(1):30-41.
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Keywords: International trade; econometrics; elasticities; paper and paperboard; sulfate pulp; sulfite pulp

Document Type: Journal Article

Affiliations: Assistant Professor, Department of Natural Resource Sciences, Washington State University, Pullman, WA 99164

Publication date: 01 March 1989

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