Export supply of New Zealand's live rock lobster to Japan: an empirical analysis

This paper investigates the export supply behavior of live rock lobster from New Zealand (NZ) to Japan. Potential factors such as foreign and domestic prices, productive capacity, stochastic and deterministic seasonality, introduction of trade barriers and changes in management regulatory decisions were taken into consideration to construct the export supply function. Using a partial adjustment modeling (PAM) approach, it was found that lag supply, productive capacity, seasonality and time trend were significantly affecting the export supply behavior of live rock lobster. The NZ seafood industry as well as its fishing industry may find the findings from this study useful in formulating appropriate policies to sustain export market returns and maintain long term sustainability of the resource.