Mariano, Hazel Rose B., <br/><br/>
An analysis of the market potential of Philippine cocoa on importing countries / 
Hazel Rose B. Mariano ; Vlademir A. Shuck, adviser. 
 - vi, 59 leaves :  illustrations 
<br/><br/> Thesis, Undergraduate (BS in Agribusiness Economics) --University of the Philippines, Mindanao 
<br/><br/> Determining the market potential of a product is critical in order to ascertain its economic viability. This paper was conducted to assess the market potential of Philippine cocoa on importing counntries. This is through having a comprehensive analysis of the situation of the industry both locally and globally, identifying the major demand areas of cocoa internationally, and estimating the responsiveness of demand on changes in price, income and price of substitutes. Three countries were considered in this study which are China, Singapore and USA. Ordinary Least Squares (OLS) and Seemingly Unrelated Regression (SUR) models were used to estimate the market potential of cocoa in the three countries. The results of the study revealed that there is no contemporaneous correlation among the three countries, hence, the OLS result is already sufficient and there is no need for SUR estimation. Only Singapore and USA exhibited a statistically significant demand model among the three chosen countries. The per capita income of Singapore is the only significant variable. However, it carries a negative coefficient which means that the cocoa is considered as an inferior good. Morever, result showed that the demand for cocoa in Singapore is income inelastic. As for USA; price, per capita income and price of substitute are all significant variables. However, these variables also contradict the theoretical assumptions. The study revealed that USA is not too sensitive when it comes to the product's price. Futhermore, it was found out that Philippine cocoa export, like Singapore, is considered as an inferior good. This may indicate that a rise in the per capita income of both US and Singapore may lead to a decline in demand for cocoa. Lastly, cocoa and coffee are considered to be complementary goods for USA. Hence, given the results of this study, suitable strategies should be implemented among the actors of the industry in order to address the problems that hinder its success.