An Empirical Examination of Export Supply and Import Demand Models in World Corn Market

Focusing on the Impacts of Corn Based Ethanol Production

This paper estimates the export supply and import demand models for world com market using the annual data from 1985 through 2010. On export supply side, this paper analyzes the effects of economic growth on com export as well as the effects of export com price on com trade. On import demand side, this paper calculates the price and income elasticity of domestic com price on import quantity, and obtains the effects of social welfare on export prices using consumer surplus for major com importing countries. Also, the impacts of com utilized in ethanol production include in export supply/import demand models. Empirical results suggest that economic growth of exporting countries negatively affect the com export volume and oil price has strongly related on the export com price. The com utilized in ethanol production have negatively impacts on export quantity while have positive impacts on import quantity and export com price. Also, elasticity of price and income is insensitive on import quantity, and the social effects for the increasing of exporting com price can seriously influence on the reductions of consumer surplus in importing countries.