ANALYSIS OF INFLUENCE OF FOOD IMPORT PRICES ON DOMESTIC MARKET PRICES: METHODICAL ASPECTS
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ANALYSIS OF INFLUENCE OF FOOD IMPORT PRICES ON DOMESTIC MARKET PRICES: METHODICAL ASPECTS
Annotation
PII
S042473880000616-6-1
Publication type
Article
Status
Published
Pages
20-27
Abstract
The article examines the impact of the prices of imported products in the domestic prices (producer prices and consumer prices) under conditions of imperfect substitution. Special attention is paid to the extent to which imported and domestic goods to replace each other in the domestic market. In this context, examines the relationship elasticity transmission prices for imported products in the domestic prices and the Armington elasticity of substitution. The research is based on a simple one- sector model of supply and demand, which is on the demand side includes the Armington approach. The relationship of the elasticities of substitution and elasticity of transmission price of imports in producer prices and consumer prices is illustrated by the example of the domestic market of meat (poultry, cattle and pork). The results do not contradict the economic reality and the situation on food markets.
Keywords
Import substitution, price of imports, the domestic price, elasticity of substitution, elasticity of transmission, Armington approximation, food market
Date of publication
01.01.2016
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0
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62
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References



Additional sources and materials

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Armington P.S. (1969). A Theory of Demand for Products Distinguished by Place of Production. IMF Staff Papers 16.

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