EXPORT SUPPLY RESPONSE OF THE AUSTRALIAN CITRUS INDUSTRY

A model of export supply response of the Australian citrus industry is developed and estimated using cointegration and error correction tech niques and quarterly data for the period 1983 to 1993, The estimates s uggest that, even in the long run, the supply of citrus exports is ine lastic with respect to relative price, The results also show that the adjustment of export supply to changes in relative price is not instan taneous, the domestic production capacity has a significant positive i mpact on export supply, and export supply in the June quarter in each year is significantly lower than in other quarters.