Exchange Rates, Foreign Income and U.S. Agriculture
AbstractThis paper focuses on estimating the effects of trade partner income and real trade-weighted exchange rates on US agricultural exports. For the period 1970-2003, a one percent annual increase in trade partnersâ income is found to increase total agricultural exports by about 1.6 percent while a one percent appreciation of the dollar relative to trade partner trade-weighted currencies decreases total agricultural exports by about 0.8 percent. We find these effects also carry over to 12 commodity subcategories, although the effects are conditioned by differences between bulk and high value commodities, and differences in the export demand from high compared to low income countries. We also find that the negative effect of exchange rate appreciation on exports often dominates the positive effect from income growth.
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Bibliographic InfoPaper provided by University of Minnesota, Economic Development Center in its series Bulletins with number 12975.
Date of creation: 2006
Date of revision:
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More information through EDIRC
Exchange rates; U.S. agricultural trade; U.S. agricultural commodity exports; U.S. agricultural export prices; foreign income; International Relations/Trade; F10; F14; Q17;
Other versions of this item:
- Shane, Mathew & Roe, Terry L. & Somwaru, Agapi, 2006. "Exchange Rates, Foreign Income, and U.S. Agriculture," Conference Papers 6686, University of Minnesota, Center for International Food and Agricultural Policy.
- F10 - International Economics - - Trade - - - General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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