| Abstract |
This study examines South Korea’s origin-specific import demand system for maize, wheat and
soybean meal, using a linear logit cost-share model. Static and dynamic specifications are
compared to determine the preferred specification for each commodity. The estimated price
elasticities reveal whether import sourcing is rigid or flexible across exporters. Maize demand
exhibits gradual adjustment to price changes, with imports from Brazil remaining relatively
price-inelastic, whereas imports from the United States, Argentina, and Ukraine account for most
of the price-induced reallocation. Soybean meal demand also adjusts gradually, reflecting heavy
dependence on Brazil and complementarity with Argentina. By contrast, wheat demand is best
described by a static specification, with Ukraine and other Black Sea origins functioning as core
suppliers and North American and Australian origins serving as more price-sensitive alternatives.
Overall, our findings provide valuable information on commodity-specific import diversification
and risk management.
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