Original Research

Econometric estimation of Armington elasticities for selected agricultural products in South Africa

Abiodun Ogundeji, Andre Jooste, D Uchezuba
South African Journal of Economic and Management Sciences | Vol 13, No 2 | a41 | DOI: https://doi.org/10.4102/sajems.v13i2.41 | © 2010 Abiodun Ogundeji, Andre Jooste, D Uchezuba | This work is licensed under CC Attribution 4.0
Submitted: 01 July 2010 | Published: 03 December 2010

About the author(s)

Abiodun Ogundeji,, South Africa
Andre Jooste, University of the Free State, South Africa
D Uchezuba, University of the Free State, South Africa

Full Text:

PDF (672KB)

Share this article

Bookmark and Share

Abstract

Price transmission behaviour is used to model the impacts of different trade regimes; if this behaviour is not modelled correctly, the trade impacts can be either under- or overestimated.  Due to the lack of elasticities of substitution pertaining to selected imported and domestically produced agricultural products in South Africa, ‘Armington’ elasticities, using quarterly data from 1995-2006 and three different models, based on the time series properties of the data, are estimated in this paper.  Considering the long-run elasticity results, soyabeans (whether broken or not) and meat of bovine animals (frozen) are the most sensitive import products, followed by maize, meat of bovine animals (fresh or chilled), sunflower seeds, and wheat and meslin. Regarding the short-run elasticity, soyabeans are the most sensitive import product, followed by meat of bovine animals (fresh or chilled); meat of swine (fresh, chilled or frozen) is the least sensitive import product.


Keywords

No related keywords in the metadata.

Metrics

Total abstract views: 2512
Total article views: 3426


Crossref Citations

No related citations found.