Analysis of the international demand for Brazil nuts Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/vd66w286m

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  • The basic objective of this investigation was to identify and to examine factors determining the volume of imports of inshell and shelled Brazil nuts in major importing countries: the United States, the Federal Republic of Germany and the United Kingdom. The approach followed involved the construction and analysis of an adjusted bilateral trade model of this commodity market, based upon consumer demand theory and an understanding of the industry. This model, employing single stage least squares method (OLS), identifies a number of factors as important determinants of the volume of nut imports, such as: (a) the price of the commodity relative to the general price level, (b) consumer's income, and (c) price or quantity of related commodities. Demand for Brazil nuts is price inelastic in all markets, except for shelled nuts in the German market. Because of the peculiar situation of Brazil as, practically, the only producer and exporter of Brazil nuts, some consideration is given to the possibility of increasing gross revenues by means of market control.
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