A global approach to estimating import demand elasticities: Insights from major agricultural sectors

Abstract

We present a framework for estimating global import demand across 22 product categories. By aggregating bilateral import data by exporting source, we assessed the worldwide impact of prices on import demand by source. This methodology facilitated the analysis of all exporting countries within a unified estimation framework, simplifying the process compared to estimating separate models for each importing country. Results indicate that estimating global demand within a single framework captures the competitive dynamics among exporters while yielding statistically significant and robust estimates. A global approach is especially useful when analyzing factors with global implications.