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The Impact of Multiple Volatilities on Import Demand for U.S. Grain: The Case of Soybeans

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Author Info
Zhang, Qiang
Reed, Michael R.
Abstract

This study attempts to investigate the effects of exchange rate, soybean price, and ocean freight costs on import demand for U.S. grain with forward-futures markets. The focus is on soybeans. The panel data cover the major exporting markets for U.S. soybeans over the last decade. China and Mexico are analyzed as two specific case analyses excluded from the panel data analysis. Furthermore, the bilateral data of Brazilian exported soybeans to its exporting markets with the same procedures are employed as comparisons with U.S. The effects of these three market volatilities, exchange rate, soybeans price, and ocean freight cost for the U.S. and Brazilian models have differences comparing with empirical results.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21079.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21079

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Keywords: International Relations/Trade;

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  1. Koray, Faik & Lastrapes, William D, 1989. "Real Exchange Rate Volatility and U.S. Bilateral Trade: A VAR Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 708-12, November. [Downloadable!] (restricted)
  2. Jacinto F. Fabiosa, 2002. "Assessing the Impact of the Exchange Rate and Its Volatility on Canadian Pork and Live Swine Exports to the United States and Japan," Center for Agricultural and Rural Development (CARD) Publications 02-wp305, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
  3. Sun, Changyou & Kim, Mina & Koo, Won & Cho, Guedae & Jin, Hyun, 2002. "The Effect Of Exchange Rate Volatility On Wheat Trade Worldwide," Agribusiness & Applied Economics Report 23579, North Dakota State University, Department of Agribusiness and Applied Economics. [Downloadable!]
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  4. Keith E. Maskus, 1986. "Exchange rate risk and U.S. trade: a sectoral analysis," Economic Review, Federal Reserve Bank of Kansas City, issue Mar, pages 16-28. [Downloadable!]
  5. Jacinto F. Fabiosa, 2002. "Assessing the Impact of the Exchange Rate and Its Volatility on Canadian Pork and Live Swine Exports to the United States and Japan," Food and Agricultural Policy Research Institute (FAPRI) Publications 02-wp305, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
  6. Kumar, Ramesh & Dhawan, Ravinder, 1991. "Exchange rate volatility and Pakistan's exports to the developed world, 1974-85," World Development, Elsevier, vol. 19(9), pages 1225-1240, September. [Downloadable!] (restricted)
  7. Franke, Gunter, 1991. "Exchange rate volatility and international trading strategy," Journal of International Money and Finance, Elsevier, vol. 10(2), pages 292-307, June. [Downloadable!] (restricted)
  8. Cushman, David O., 1983. "The effects of real exchange rate risk on international trade," Journal of International Economics, Elsevier, vol. 15(1-2), pages 45-63, August. [Downloadable!] (restricted)
  9. Kroner, Kenneth F. & Lastrapes, William D., 1993. "The impact of exchange rate volatility on international trade: Reduced form estimates using the GARCH-in-mean model," Journal of International Money and Finance, Elsevier, vol. 12(3), pages 298-318, June. [Downloadable!] (restricted)
  10. Fabiosa, Jacinto F., 2002. "Assessing the Impact of the Exchange Rate and Its Volatility on Canadian Pork and Live Swine Exports to the United States and Japan," Staff General Research Papers 2116, Iowa State University, Department of Economics. [Downloadable!]
  11. Mark, Nelson C., 1990. "Real and nominal exchange rates in the long run: An empirical investigation," Journal of International Economics, Elsevier, vol. 28(1-2), pages 115-136, February. [Downloadable!] (restricted)
  12. Viaene, J-M. & De Vries, C.G., 1989. "International Trade And Exchange Rate Volatility," Papers 8905, Erasmus University of Rotterdam - Institute for Economic Research.
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