ABSTRACT
Shrimp is produced throughout the world with more than one-hundred countries reporting production in 1989. Rapid expansion in production of farm-raised shrimp during the 1980s, in addition to other factors, has stimulated growth in the US shrimp import market. While measuring the impact of increased (decreased) shrimp aquaculture on US import growth is useful for policy and planning purposes, the United States has little control over the anticipated growth in world shrimp supplies. It was suggested, however, that any rise in domestic warm-water shrimp prices, brought about by a reduction in imports would encourage additional effort in the domestic shrimp fleet and a dissipation of initial gains in profit. An econometric simultaneous-equations model including the US and Japan shrimp import markets and US dockside demand was used to quantify the impacts of shrimp aquaculture on US imports and domestic warm-water dockside shrimp prices.
