West Coast fruit cooperatives working together in joint-venture
trading companies may well lower the prices of their fruit for export
through economies of scale. However, present and future foreign demand
for American fruit may constrain any economies of scale that are realized
in joint-venture agreements. The major objective of this thesis is to
analyze the import demand for fresh American oranges, apples, and grapes
of one important buying area, Hong Kong.
Two theoretical constructs are used to model the import demand for
American oranges, apples, and grapes in Hong Kong. One relies on more
traditional assumptions of product homogeneity. The other utilizes the
Strotzian utility tree. The resulting models are estimated using Ordinary
Least Squares. Four conclusions may be drawn from the estimated models.
First, Hong Kong consumers have very elastic responses to changes in
the prices of American oranges, apples, and grapes relative to the prices
of oranges, apples, and grapes from other sources. Second, this result is
especially true when below average demand conditions prevail. Hence,
lower prices realized through joint-venture trading companies increase the
competitiveness of American fruit at these weaker times. Third, the per
capita quantity demanded of American oranges, apples, and grapes will
increase as the incomes of Hong Kong's inhabitants rise. Fourth, the
statistical problems encountered in the larger models preclude any
definite conclusions regarding the price effects of other fruit on the
demand for American oranges, apples, and grapes or the price effects
which the American fruit may have on each other. / Graduation date: 1986
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/26747 |
| Date | 30 August 1985 |
| Creators | Johnson, Martin A. |
| Contributors | Martin, Michael V. |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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