Analysis of the economic variables that determine strawberry exports from Mexico to the United States of America
DOI:
https://doi.org/10.29312/remexca.v13i4.2532Keywords:
econometric model, export demand, price elasticity, income elasticityAbstract
The main strawberry-producing countries are China, the United States of America and Mexico, which account for about fifty-nine percent of the world’s production. Also, the largest strawberry exporters are Spain, the United States of America and Mexico, which contribute about sixty-one percent of the exports in the world. The objective of the work is to analyze the relationship between Mexico’s strawberry exports to the United States of America and their economic determinants, among which the following stand out: Mexico’s unit export price, the gross domestic product of the United States of America and the total demand of the United States of America for strawberry imports in the world, and to calculate the price and income elasticities of demand for strawberry exports from Mexico. The signs of the estimated regression coefficients and the price and income elasticities are consistent with the demand theory, the variable with the greatest influence on the variations in export demand is the gross domestic product of the United States of America, the obtained price elasticity of the exports, less than one, reflects that the export strawberry is an inelastic product and the income elasticity of the exports, less than one, indicates that the strawberry is a normal good for the United States of America. The estimated regression model is consistent and congruent with the export demand theory.
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