DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA

1970-98 period. Meat consumption, however, increased faster than fish consumption for the
period. Meat is divided into beef, pork, and chicken. Beef is further divided into beef produced in
Korea (Hanwoo beef) and imported beef. Since Korea does not import pork and chicken
regularly, imported pork and chicken are not considered in this study. Fish and other seafood are
categorized into three groups of products: (1) fish, which includes cod, flounder, pollack,
corvinias, anchovy, mackerel, saury, and tuna; (2) crustaceans, which include shrimp and crab;
and (3) mollusks, which include abalone, oyster, shell, clam, squid, and octopus.

Quarterly time series data for 1980-98 are used to estimate a theoretical demand model
for the Korean meat and fish industries. Quantities of meat consumed and prices were obtained
from the National Livestock Cooperative Federation in Korea. Consumption and price data for
fish products came from the “Monthly Statistics on Cooperative Sales of Fishery Products”
published by the National Fishery Cooperative Federation of Korea. The consumer price index,
disposable income, and population are from the Korean Statistical Information System (KOSIS)
published by the National Statistical Office (NSO). The sample statistics for meat and fish
product expenditure share for Korea from 1980 to 1998 are summarized in Table 1.

Separability Between Meat and Fish Products

A concern is separability between meat and fish products in the two-stage budgeting
procedure. If they are separable, it is more efficient to estimate the demand for meat products
separately from the demand for fish products. On the other hand, if they are not separable, they
should be estimated in one demand system. Consequently, a separability test for Korea’s demand
for meat and fish products (Eales and Wesells) is conducted for the specification of the demand
model. Table 2 reports separability tests between meat and fish products. Both the F and LR tests

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