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Abstract
Faced with a dynamic change in U.S. trout imports, this study tried to identify how trout
imports affect the domestic trout industry in the United States. In doing so, this study
analyzed the quantity effect and exchange rate effect on domestic trout price using a
modified LDI-AIDS model. According to the results of this study, we found five important
facts related to trout imports during this sample period of time. First, a low farm price of
domestic trout might be due to reasons other than trout imports because empirical results
show that the net effects of imported trout products are complementary rather than
substitutionary in effect. Second, domestic trout price decreases with an increase in total
trout supply into domestic market. Third, imported frozen products are gross-substitutes
for domestic product, while imported fresh products are gross-complements for domestic
product. Fourth, for domestic trout, the intensity of substitutable interaction of imported
products is as follows: frozen fillets > frozen whole trout > fresh whole trout > rainbow
trout. Finally, depreciation of the U.S. Dollar relative to the Chilean Peso reduces the
negative impact of Chilean imported trout on domestic trout price.