Skip to main content
SLU publication database (SLUpub)

Research article2024Peer reviewedOpen access

An econometric investigation of EU's import demand for fresh potato: a source differentiated analysis focusing on Egypt

Abu Hatab, Assem; Surry, Yves

Abstract

Purpose A better understanding of the determinants of demand through accurate estimates of the elasticity of import demand can help policymakers and exporters improve their market access and competitiveness. This study analyzed the EU's demand for imported potato from major suppliers between 1994 and 2018, with the aim to evaluate the competitiveness of Egyptian potato. Design/methodology/approach This study adopted an import-differentiated framework to investigate demand relationships among the major potato suppliers to the EU's. To evaluate the competitiveness of Egyptian potato on the EU market, expenditure and price demand elasticities for various suppliers were calculated and compared. Findings The empirical results indicated that as income allocation of fresh potatoes increases, the investigated EU markets import more potatoes from other suppliers compared to imports from Egypt. The results show that EU importers may switch to potato imports from other suppliers as the import price of Egyptian potatoes increases, which enter the EU markets before domestically produced potatoes are harvested. Research limitations/implications Due to data unavailability, the present study relied on yearly data on quantities and prices of EU potato imports. A higher frequency of observations should allow for considering seasonal effects, and thereby providing a more transparent picture of market dynamics and demand behavior of EU countries with respect to potato import from various sources of origin. Originality/value The study used a system-wide and source differentiated approach to analyze import demand. In particular, the empirical approach allowed for comparing different demand models (AIDS, Rotterdam, NBR and CBS) to filter out the superior and most suitable model for that data because the suitability and performance of a demand model depends rather on data than on universal criteria.

Keywords

Import demand; General differential model; Potato; Egypt; EU

Published in

Journal of Agribusiness in Developing and Emerging Economies
2024, Volume: 14, number: 2, pages: 393-411 Publisher: EMERALD GROUP PUBLISHING LTD

      SLU Authors

    • UKÄ Subject classification

      Economics

      Publication identifier

      DOI: https://doi.org/10.1108/JADEE-10-2021-0254

      Permanent link to this page (URI)

      https://res.slu.se/id/publ/123326