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Abstract

A two-equation model of price determination and demand is estiamted for poultry in 5 East Asian countries. An Error Correction Model of Demand is used to test the hypothesis that dynamics are important in explaining consumer behavior. Results show that real poultry prices have declined in East Asia due to the transfer of cost-reducing technology from the U.S. Demand dynamics are important only in the most rapidly changing economies and income growth has been the most important determinant of demand growth.

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