17Jul 2017

ESTIMATES OF MULTI-COLLINEARITY FOR SUPPLY FUNCTION OF PORK BY TIME-SERIES DATA IN SOUTH KOREA.

  • Swine Science and Technology Center, Gyeongnam National University of Science & Technology, Jinju 52725, South Korea.
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A large amount of pork has been imported in South Korea according to conclusion of FTA with many countries. Therefore, analysis on determinants in production of domestic pork (PDP) plays a critical role as an indicator for decision making of producer and distributor of pork. As a result of this study, the independent variables to explain PDP were selected by 7 and 4 variables through variance inflation factor and stepwise selection method, respectively. The consumption of domestic pork and beginning stocks of domestic pork played an important role to determine PDP (P<0.01). In addition, Hanwoo beef and chicken, which is recognized as an alternative to pork, were a weak but played a role as a substitute material. However, Pork in South Korea to clearly maintain four seasons exhibited seasonally contradictory characteristics due to supply quantity depending on biological characteristics and specific consumption culture. Therefore, we suggest that producer and distributor are economically important to control marketing volume in response to biological characteristics of pig, and seasonal demand and supply situations of pork market. In other words, it is necessary that producer and distributor carry out rearing and inventory managements, respectively, to supply the summer market increasing consumption.

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[Tae Wan Kim. (2017); ESTIMATES OF MULTI-COLLINEARITY FOR SUPPLY FUNCTION OF PORK BY TIME-SERIES DATA IN SOUTH KOREA. Int. J. of Adv. Res. 5 (Jul). 618-626] (ISSN 2320-5407). www.journalijar.com

Tae Wan Kim
Gyeongnam National University of Science and Technology

DOI:

Article DOI: 10.21474/IJAR01/4761      
DOI URL: http://dx.doi.org/10.21474/IJAR01/4761

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