Dynamic Estimation of U.S. Demand for Fresh Vegetable Imports

This paper analyses U.S. demand for fresh vegetable imports using a dynamic AIDS model. The commodities selected for the study include tomatoes, peppers, cucumbers and asparagus. The results shows that the demand for fresh vegetable imports is more elastic compared to the demand for domestic fresh vegetables. Also demand for all the fresh vegetables is significantly responsive to changes in own-price and expenditure. Fresh tomatoes, peppers, and cucumber imports do not complement domestic supply as is often believed but are significant substitutes.