Hostname: page-component-848d4c4894-8kt4b Total loading time: 0 Render date: 2024-07-08T05:21:49.951Z Has data issue: false hasContentIssue false
  • English
  • Français

The Import Demand for U.S. Burley Tobacco in European Markets

Published online by Cambridge University Press:  28 April 2015

Michael R. Reed  and
Randall D. Schnepf
Michael R. Reed
Affiliation:
University of Kentucky, Lexington
Randall D. Schnepf
Affiliation:
University of Kentucky, Clayton Brokerage, St. Louis, MO
Get access Rights & Permissions [Opens in a new window]

Extract

One of the chief complaints against the federal tobacco program is that it sets prices too high relative to foreign tobaccos: most foreign burley tobaccos are priced between one-third and one-half the price of U.S. burley. Critics feel that if the government program were changed so that burley production could increase, prices would be lower, and more burley tobacco would be consumed. Production increases could bring about two beneficial effects. First, U.S. burley tobacco would be more competitive in overseas markets, and, therefore, exports could increase. Second, U.S. imports of foreign burley could decrease. This study examines the validity of the first argument; its main objective is to evaluate the elasticity of demand for U.S. burley tobacco in European markets. Of course, the more price elastic is the demand for U.S. burley in these European markets, the more exports will expand if U.S. prices are lowered. Evidence is also provided on the growth potential of these foreign markets.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 14 , Issue 1 , July 1982 , pp. 141 - 145
Copyright
Copyright © Southern Agricultural Economics Association 1982

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Capel, R. E. “An Analysis of the Export Demand for U.S. Flue-Cured Tobacco.” Ph.D. dissertation, North Carolina State University, 1966.Google Scholar
International Monetary Fund. International Financial Statistics. Washington, D.C.: IMF, various issues.Google Scholar
Kmenta, J.Elements of Econometrics. New York: Macmillan Co., 1971.Google Scholar
Mann, J. S. “A Dynamic Model of the U.S. Tobacco Economy.” Agr. Econ. Res. 25(1973):401–11.Google Scholar
Reed, M. R. “An Analysis of Policy Alternatives for the U.S. Burley Tobacco Market.” S. J. Agr. Econ. 12(1980):71–76.Google Scholar
Schnepf, R. D. “An Econometric Analysis of Foreign Demand for U.S. Burley Tobacco.” M.S. thesis, University of Kentucky, 1981.Google Scholar
Sutton, R. W. “An Econometric Analysis of the Structure of the U.S. Tobacco Industry.” Ph.D. thesis, University of Kentucky, 1974.Google Scholar
U.S. Department of Agriculture. Foreign Agricultural Circular. Washington, D.C.: USDA, various issues.Google Scholar
U.S. Department of Agriculture. Tobacco Situation. Washington, D.C.: USDA, various issues.Google Scholar