An Economic Study to Estimate the Almost Ideal Demand for Dried Beans and Dried Onions in the Most Important Foreign Markets

Document Type : Original Article

Authors

Department of Agricultural Economics, Faculty of Agriculture, Ain Shams University

Abstract

The research aims to estimate the demand functions for Egyptian exports of both dried beans and dried onions in the most important global markets using the Almost Ideal Demand System to identify the extent to which it is possible to increase the competitiveness of these products in those markets. The research reached the following results:
1- The most important importing countries of dried beans in terms of value are Algeria, Turkey and Iraq, with a relative importance of about 24.5%, 16.7%, and 12.5%, respectively, during the period (2018-2022).
2- The most important countries importing dried onions in terms of value are the Netherlands, Germany and Japan, with a relative importance of about 24.6%, 18.5%, and 9.5%, respectively, during the period (2018-2022).
3- The results of the Almost Ideal Demand System for dry beans in the Algerian, Turkish, and Iraqi markets showed that the price elasticity of demand reached -0.84, -1.63, and -1.31, respectively. This means that it is a commodity with inelastic demand in the Algerian market and elastic demand in both the Turkish and Iraqi markets. Spending elasticity amounted to about 1.11%, 2.6%, and 0.12%, which indicates that it is a normal commodity in the Algerian and Turkish markets, while it was necessary in the Iraqi market.
4- The results of the Almost Ideal Demand System for dried onions in the German, Dutch, and Japanese markets also showed that the price elasticity of demand reached -3.05, -0.61, and -0.95, respectively. This means that it is a commodity with inelastic demand in the Algerian market and elastic demand in both the Iraqi and Turkish markets. Spending elasticity also reached about 1.75%, 0.82%, and 2.3%, which indicates that it is a normal commodity in the German and Japanese markets, while it was necessary in the Dutch market.
 

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