Export Elasticities for US and Brazilian Soyabeans: Weighted-Market-Share Approach

Price and income elasticities for imports of US and Brazilian soyabeans by each of the eight major workd soyabean importers and the rest of the world were weighted by their shares of the respective soyabean markets and summed to approximate total price and income elasticities for US and Brazilian soyabean exports. This weighted-market-share technique was applied to elasticity estimates derived from two different procedures: Sirhan and Johnson's market-share approach and direct estimation. Estimates from both procedures indicated that, in the short run (1 year) during 1972-85, soyabean exports from the USA were inelastic with respect to price; from Brazil they were elastic with respect to price; and from both countries they were elastic with respect to income.