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The Impact of Brazil and Argentina's Currency Devaluation on U.S. Soybean Trade

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Author Info
Andino, Jose
Mulik, Kranti
Koo, Won
Abstract

We analyzed the effects of Brazil and Argentina's currency devaluation on the U.S. soybean import demand in major importing countries. Results indicate that nominal exchange rates between the United States and importers affect the U.S. soybean export market. Additionally, we found evidence that currency depreciations have favored soybean exports from Argentina and Brazil at the cost of reduced exports from the United States. Increased world soybean demand has promoted export sales from major producers, affecting export prices. Adoption of GM soybeans in the United States has been a determinant in decreased U.S. soybean import demand.

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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 21450.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21450

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Keywords: International Relations/Trade;

References listed on IDEAS
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  1. Klein, Michael W., 1990. "Sectoral effects of exchange rate volatility on United States exports," Journal of International Money and Finance, Elsevier, vol. 9(3), pages 299-308, September. [Downloadable!] (restricted)
  2. 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!]
  3. Goldstein, Morris & Khan, Mohsin S., 1985. "Income and price effects in foreign trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 20, pages 1041-1105 Elsevier. [Downloadable!] (restricted)
  4. O. Cushman, David, 1986. "Has exchange risk depressed international trade? The impact of third-country exchange risk," Journal of International Money and Finance, Elsevier, vol. 5(3), pages 361-379, September. [Downloadable!] (restricted)
  5. Cunningham, Carrie J. & Unnevehr, Laurian J., 2000. "Market Segmentation For Genetically Modified Corn And Soybean Exports," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26020, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance. [Downloadable!]
  6. Langley, Suchada & Guigale, Marcelo & Meyers, William & Hallahan, Charles, 2002. "International Financial Volatility and Agricultural Commodity Trade: A Primer," Staff General Research Papers 5054, Iowa State University, Department of Economics.
  7. Bessler, David A & Babula, Ronald A, 1987. "Forecasting Wheat Exports: Do Exchange Rates Matter?," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(3), pages 397-406, July.
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