EVALUATION OF THE POSSIBLE THREAT OF NAFTA ON U.S. CATFISH INDUSTRY USING A TRADITIONAL IMPORT DEMAND FUNCTION

The effects of increased exports from NAFTA member countries on the U.S. domestic catfish industry were evaluated. Results showed that the quantity of catfish imported will fall if the domestic price of catfish falls relative to the import price. Past imports have no effect on present imports. The income elasticity was negative indicating that imported catfish may be an inferior good. Doubling present levels of imports from NAFTA member countries is not a threat to the U.S. catfish industry.