Estimation of U.S. Demand for Imported Shrimp by Country: A Two-stage Differential Production Approach

The demand for imported shrimp in the United States by country of origin is estimated by using the two-stage differential production method. Conditional and unconditional own/cross price elasticities are derived. We further project how countervailing duties imposition by U.S. affect source-specific shrimp imports. The results from aggregate level data show that overall the ownprice elasticities indicate that U.S. demand for imported shrimp is inelastic. U.S. total shrimp imports would experience an increase despite the countervailing duties, which may not be effective