The decline in cigarette consumption within developed countriesmakes the exploitation of new markets particularly important to tobaccocompanies. UK data on exports is used to show that, by splitting thesample into three groups, income and prices have significant butdifferent effects on cigarette import demand according to country type.Additionally the extent to which firms vary prices according to theseinternal circumstances in an effort to increase total consumption isexamined. Stresses that, while exports to newly industrializing and oilexporting countries have risen most dramatically, markets in LessDeveloped Countries are also a fertile source of future sales and mayprovide a focus for future policy coordination.
Journal of Economic Studies – Emerald Publishing
Published: Feb 1, 1992
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