Abstract
This research described in this article aimed to investigate international market potentials for Pangasius catfish (Pangasianodon hypopthalmus). The monthly export data from Vietnam, which accounts for more than 95% of the global export value, in the period 2007 to 2014, were used to estimate a non-linear Inverse Almost Ideal Demand System of the seven market regions. Prices in all markets are found very inflexible, with own-price flexibilities on −0.200 to −0.917, or −0.419 on average, revealing the option of expanding global production and export without inducing a substantial price reduction. Consumers in all markets except Latin America evaluate Pangasius as a necessary good, indicating that the Pangasius industry is relatively little affected by recessions and booms in the world economy. The major markets are substitutes for each other; therefore, if demand at one market region is reduced, the presence of substitution leads suppliers to find other markets. The results reveal that demand provides stable framework conditions for the Pangasius industry.
| Original language | English |
|---|---|
| Journal | Aquaculture Economics & Management |
| Volume | 21 |
| Issue number | 3 |
| Pages (from-to) | 400-417 |
| Number of pages | 18 |
| ISSN | 1365-7305 |
| DOIs | |
| Publication status | Published - 3 Jul 2017 |
Keywords
- IAIDS
- market potential
- market substitution
- Mekong Delta
- Pangasius catfish
- price flexibility