Caribbean Food Import Demand: An Application of the CBS Differential Demand System

Abstract

This study uses a Central Bureau Statistics (CBS) demand system to estimate food import demand parameters for the Caribbean region. The analysis is based on food import data for 1961–2009 from the FAO-STAT database. The study determined that for the defined period the Caribbean food import demand was price inelastic, and that tourism arrivals and real income growth were not statistically significant in determining food import demand. However, per capita agricultural production was found to be statistically significant in determining Caribbean food import demand over the study period.