ISSN: 0041-3216 (Online), 0041-3216 (Print)
Volume 87 Number 2
Aggregate seafood import demand in selected tourism-reliant Caribbean countries. (86)
An aggregate seafood import demand function for selected Caribbean countries is estimated using a Generalized Autoregressive Conditional Heteroscedasticity model to correct autocorrelation and heteroscedasticity. The results show that aggregated seafood import is elastic (-1.12), low-valued import is more elastic (-1.21), but high-valued import is inelastic (-0.72). Exchange rate has a negative effect on seafood import quantity. Income is not a factor in Caribbean seafood imports. Tourism has a positive impact on seafood imports. Seafood imports have a negative effect on domestic fisheries production, and a price increase is important in stimulating domestic fish production. Caribbean policy makers must be careful in articulating policies to encourage domestic production since increases in prices through a tariff may have differential effects on consumer groups.
Keywords: Seafood, import demand, Caribbean