Author ORCID Identifier

orcid.org/0000-0001-5673-0625

Date Available

7-20-2022

Year of Publication

2022

Document Type

Master's Thesis

Degree Name

Master of Science (MS)

College

Agriculture, Food and Environment

Department/School/Program

Agricultural Economics

Advisor

Dr. Yuqing Zheng

Abstract

Coffee production in Vietnam has increased almost 100-fold within the past three decades, positioning it to become the second-largest coffee exporter in the world after Brazil. The U.S. is a top market for Vietnamese coffee. In this study, we estimate a conditional demand system of expenditure share equations for coffee from Vietnam, Brazil, Colombia, and an aggregate of seven other countries in the U.S. coffee market using the Linear Approximation Almost Ideal Demand System (LA/AIDS) and based on monthly time-series data from 2000 to 2020 with a total of 252 observations. Compensated and uncompensated own-price, cross-price, and expenditure elasticities were statistically significant at p < 0.001. Vietnamese coffee was found to be inelastic. The results suggest that increasing Vietnamese coffee prices could increase its revenue, while Brazilian and Colombian coffee exporters should be more careful in raising their coffee prices.

Digital Object Identifier (DOI)

https://doi.org/10.13023/etd.2022.249

Included in

Agribusiness Commons

Share

COinS