An Analysis of Latin American Peanut Trade

Abstract

The U.S. export share in the world peanut market has decreased due to heavy competition. In this paper, the Latin American peanut industry is modeled using seemingly unrelated regression (SUR). Based on these estimations, a scenario analysis was conducted. The results show that the Latin American demand is not affected dramatically by either domestic or world price shocks. The effects of price changes on net trade are noticeable. However, the world price does not significantly affect the Latin American peanut supply. The results imply that Latin American peanut farmers are more sensitive to changes in domestic prices than world price changes.

Panel Data Estimation Methods on Supply and Demand Elasticities: The Case of Cotton in Greece

“…In this case, the best linear unbiased estimator is the Generalized Least Squares (GLS). Up to now, this method has been used by various researchers in agricultural economics (Carlberg, 2002;Fousekis and Revell, 2000;Lee, Kennedy, and Fletcher, 2006).…”