Thesis, Undergraduate (BS Agribusiness Economics)--U.P. Mindanao

This study was conducted to examine the banana chips industry with emphasis on the export demand. More specifically, it intends to conduct an industry analysis, to identify the foreign markets of banana chips, to determine the factors which affect the export demand of each country, to calculate price, income and cross price elasticity, and to provide recommendations from the results obtained. Analysis of the industry showed that inadequate and inconsistent supply of Cardaba, low technology adoption and poor access to export markets were some of the constraints in the industry. There are also threats for the industry such as increasing foreign competition and land conversion. Nevertheless, there are such notable opportunities such as expanding market and an average growth rate of exports as much as 10% annually. In estimating the export demand, it had been found out that export price, GDP and population were statistically significant in China and France.However, only GDP and population were significant in Germany.For Hongkong, the logarithmic form of the variables export price, GDP, population and price of potato chips were significant and export price, lagged export price and lagged dependent variable in Japan. For United States, only the export price and population are statistically significant. Knowing the degree of responsiveness of the export demand on the changes on these factors will help the responsiveness of the export demand on the changes on these factors will help the industry to identify on what strategies would be suitable and these markets to be maximized. For elasticity results, price elasticity of demand for China, France, Japan, and United States is elastic while it is inelastic in Hongkong. Result for price elasticity in Germany in inconclusive. With respect to income elasticity, banana chips can be concluded as a normal good in France, Hongkong, Japan and United States. On the other hand it is an inferior good in China and Germany. Cross price elasticity exhibited that banana chips are complement in Japan while they are substitutes in China, France, Germany, Hongkong, and United States. If the elasticity estimates of the study precisely reflect the behavior of the behavior of the consumers with respect to banana chips, then adjustments for pricing strategies, for trade expansion and competitors' activities must have to take into consideration.