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Aer Agricultural Exports any Special? Exchange Rate Nonlinearities in European Expors to the US

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  • Fedoseeva, Svetlana

Abstract

Using aggregated EMU exports to the US as an example, VERHEYEN (2013) showed, that in the long run exports react to exchange rate changes in a nonlinear way. In this paper we test whether this holds true for agri-food exports as well. To address this question we apply a partial sum decomposition approach and the NARDL framework of SHIN et al. (2013) to the aggregated agricultural exports of eleven European countries to the US, which is currently the major trade partner of the EU in agricultural trade. Our outcomes suggest, that the exchange rate nonlinearities are even more pronounced in agricultural than in total exports. European exporters seem to benefit more from Euro depreciation, than its appreciation harm them, which we interpret as a sign of possible pricing strategies application (e.g., pricing-to-market) to European agri-food exports.

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  • Fedoseeva, Svetlana, 2014. "Aer Agricultural Exports any Special? Exchange Rate Nonlinearities in European Expors to the US," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187428, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi14:187428
    DOI: 10.22004/ag.econ.187428
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    1. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, vol. 79(1), pages 198-210, March.
    2. Ansgar Belke & Matthias Göcke & Martin Günther, 2013. "Exchange Rate Bands Of Inaction And Play-Hysteresis In German Exports—Sectoral Evidence For Some Oecd Destinations," Metroeconomica, Wiley Blackwell, vol. 64(1), pages 152-179, February.
    3. Baldwin, Richard, 1988. "Hyteresis in Import Prices: The Beachhead Effect," American Economic Review, American Economic Association, vol. 78(4), pages 773-785, September.
    4. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
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    1. Anders, Sven & Fedoseeva, Svetlana, 2017. "Quality, Sourcing, and Asymmetric Exchange-Rate Pass-Through into U.S. Coffee Imports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(3), September.

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