10Apr 2018

DETERMINANTS OF PORK DEMAND FUNCTION BY VARIANCE INFLATION AND STEPWISE METHOD IN SOUTH KOREA.

  • Swine Science and Technology Center, Gyeongnam National University of Science & Technology, Jinju 52725, South Korea.
  • Gyeongsangnam-do Agricultural Research & Extension Services, Jinju, 52733, South Korea.
Crossref Cited-by Linking logo

  • Abstract
  • Keywords
  • References
  • Cite This Article as
  • Corresponding Author

As trade barriers are collapsed by result of trade liberalization, competition of global pork market has been accelerated by each country. Since pork is the most consuming meat in South Korea, analysis of determinants to pork consumption is a good indicator in decision making of pork producers, distributors and consumers. In addition, it is useful for 6th industrialization combing production, processing and sales of pig. The predictive power on determinants for consumption of domestic pork (CDP) was confirmed by variance inflation factor and stepwise selection methods. We selected seven and four variables, respectively, depending on the both methods for examination of CDP determinants. Production and beginning stocks of domestic pork had the greatest influence on CDP and a positive relation with each other (P<0.01). However, CDP had a negative relationship between consumer price of Hanwoo beef and chicken meat. As this result is a different pattern from general economic theory, it is considered that the situation is owing to characteristic of meat consumption concentrated in summer at South Korea.

  1. Davis, C.G. and B. Lin (2005). Factors Affecting U.S. Pork Consumption. Economic Research Service, LDP-M-130-01, USDA.
  2. FAOSTAT (2016). Live Animals. Food and Agriculture Organization of the United Nations (FAO). http://www.fao.org/faostat.
  3. Gay, Y.M. and J.U. Laurian (2001). Characteristics of Consumers Demanding and Their Willingness to Pay for Certified Safer Pork. Journal of Agribusiness 19: 101-119.
  4. Kim, T.W. (2003). A study on forecasting models of pig-farm price in Korea. Korean Journal of Agricultural Economics 44: 43-66.
  5. Kim, T.W. (2016a). Evaluation of determinant factors for entrepreneur-marketing stabilization of pork in South Korea by canonical correlation analysis. Int. J. Adv. Res. 4: 348-355.
  6. Kim, T.W. (2016b). Determinants of the marketed-pig per sow per year for decision-making of piggery entrepreneur in South Korea. Int. J. Adv. Res. 4: 1301-1306.
  7. Korea Meat Trade Association (KMTA). Meat marketing survey. http://kmta.or.kr.
  8. Korean Statistical Information Service (KOSIS). Household income and expenditure survey. http://kosis.kr.
  9. Lam, D.T., T.T. Curong, N.T.T. Huyen, V.K. Xuan and N.A. Duc (2013). Analysis of factors affecting demand of pork consumption in Vinh city, Nghe an province. J. Sci. & Devel. 11: 429-438.
  10. Mallows (1973). Some comments on Cp. Technometrics 15: 661-675.
  11. Ministry of Agriculture, Food and Rural Affairs Republic of Korea (MAFRA) (2016). 2016 Agriculture, Forestry and Livestock Food Statistics. http://lib.mafra.go.kr.
  12. National Agricultural Cooperative Federation (NACF). Materials on price, supply & demand of livestock products. https://livestock.nonghyup.com.
  13. Oh, S.H. and M.T. See (2012). Pork Preference for Consumers in China, Japan and South Korea. Asian-Aust. J. Anim. Sci. 25: 143-150.
  14. Oh, S.H. and N.C. Whitley (2011). Pork production in China, Japan and South Korea. Asian-Aust. J. Anim. Sci. 24: 1629-1636.
  15. SAS (2009). SAS/STAT 9.2 User?s Guide, 2nd. Cary, NC: SAS Institute Inc.
  16. Thornton, P.K. (2010). Livestock production: recent trends, future prospects. Phil. Trans. R. Soc. B. 365: 2853?2867.
  17. Tomek, W.G. and H.H. Peterson (2001). Risk Management in Agricultural Markets: A Review. The Journal of Futures Markets 21: 953-985.
  18. Turner, M.D. and T.O. Williams (2002). Livestock Market Dynamics and Local Vulnerabilities in the Sahel. World Development 30: 683-705.

[Tae Wan Kim, Chi Won Noh, Chul Wook Kim, Il-Suk Kim and Sam Woong Kim. (2018); DETERMINANTS OF PORK DEMAND FUNCTION BY VARIANCE INFLATION AND STEPWISE METHOD IN SOUTH KOREA. Int. J. of Adv. Res. 6 (Apr). 553-561] (ISSN 2320-5407). www.journalijar.com

Sam Woong KIm
Gyeongnam National University of Science and Technology

DOI:

Article DOI: 10.21474/IJAR01/6889      
DOI URL: https://dx.doi.org/10.21474/IJAR01/6889

Download Full Paper

Download PDF No. of Downloads: 14 | No. of Views: 126