Price Elasticity of Demand for fish Products: Practice of the Russian Market
- Authors: Sergeev L.I.1, Sergeev D.L.2
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Affiliations:
- Kaliningrad State Technical University
- Western Branch of the Russian Presidential Academy of National Economy and Public Administration
- Issue: No 4 (2024)
- Pages: 65-74
- Section: REGIONAL AND SECTORAL ECONOMICS
- URL: https://journals.rcsi.science/2306-2800/article/view/292195
- DOI: https://doi.org/10.25686/2306-2800.2024.4.65
- EDN: https://elibrary.ru/CRADET
- ID: 292195
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Abstract
Introduction. The development of the country's fisheries complex is characterized by faster growth of sales prices for the industry’s products compared to the increase in the catch volumes of aquatic biological resources. To find the optimal strategy for market pricing, it is expedient to analyze the macroeconometrics of the relationship between prices and production as well as sales of aquatic biological resources. This will help identify patterns in the formation of the corresponding proportions in order to optimize them.
The purpose of the study is to test the hypothesis suggesting that the results of the fishing industry performance are characterized by an inelastic demand with respect to the sales prices for aquatic biological resources, which is determined by the fact that the price index exceeds the growth rates of the catch volumes of aquatic biological resources. This, in turn, requires the adoption of appropriate state regulation measures to curb the unjustified rise in prices of fish products.
Results. The authors built a regression dependence of the coefficient of elasticity of the dynamic aggregate demand with respect to the sales price of fishery products in 2006–2023. It was found that an insignificant correlation does not allow using the numerical indicators of the computed regression of price demand elasticity to apply them in practical steps for optimizing the price parameters of demand and supply of the fishery products. The change in the calculated arc price elasticity of demand for the catch
of aquatic biological resources over 18 years (2006–2023) made it possible to obtain a satisfactory result of the regression correlation. The authors analyzed the dependence of the increase in the sales price on the ratio of the annual index of production of aquatic biological resources.
Conclusion. The hypothesis of the study was confirmed by means of the regression economic and mathematical apparatus. The results of the fishing industry performance are characterized by an inelastic demand with respect to the sales price, which is manifested by the fact that the price index exceeds the growth rates of the catch volumes of aquatic biological resources.
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About the authors
Leonid I. Sergeev
Kaliningrad State Technical University
Email: sergeevd@mail.ru
SPIN-code: 3841-4053
Doctor of Economics, Professor, Head of the Department of Economic Theory and Instrumental Methods
Russian Federation, 32, Maly Pereulok, Kaliningrad, 236039Dmitry L. Sergeev
Western Branch of the Russian Presidential Academy of National Economy and Public Administration
Author for correspondence.
Email: sergeevd@mail.ru
SPIN-code: 7699-8450
Candidate of Economics, Associate Professor, Associate Professor of the Department of Public and Municipal Administration
Russian Federation, 62, Artilleriyskaya St., Kaliningrad, 236016References
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