Abstract
This study examines a price relationship among domestic South Korean (hereafter, Korea) premium beef, “Hanwoo,” non-premium beef, “Yukwoo,” and imported beef from the USA and Australia. In our study, we utilize monthly data from Korea Institute for Animal Products Quality Evaluation and the Global Trade Atlas from the period between January 2009 and December 2016. We model a directed acyclic graph and employ the Granger causality test and variance decomposition methods. The results show that based on the price relationship, the imported beef products compete with Yukwoo, and not with Hanwoo. Our findings imply that Korean consumers consider Hanwoo to be different from imported beef.
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Source: Korea Trade Statistics Promotion Institute
Source: Korea Trade Statistics Promotion Institute
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Notes
“Yukwoo” in Korean means dairy beef cattle. Dependent almost entirely on Holstein bull calves, it accounts for about 10% of the domestic beef production in Korea.
The stone index utilized by the linear approximation of AIDS causes certain econometric and theoretical problems (Henningsen 2017).
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Moon, H., Seok, J.H. Price relationship among domestic and imported beef products in South Korea. Empir Econ 61, 3541–3555 (2021). https://doi.org/10.1007/s00181-021-02014-6
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DOI: https://doi.org/10.1007/s00181-021-02014-6