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Assessing the Exchange Rate Sensitivity of U.S. Bilateral Agricultural Trade

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  • Jungho Baek
  • Won W. Koo

Abstract

"This paper uses an autoregressive distributed lag approach to cointegration to examine the short- and long-run effects of exchange rate changes on bilateral trade of agricultural products between the United States and its 10 major trading partners. Results show that, in the long run, while U.S. agricultural exports are highly sensitive to bilateral exchange rates and foreign income, U.S. agricultural imports are mostly responsive to the U.S. domestic income. In the short run, on the other hand, both the bilateral exchange rates and income in the United States and its trading partners are found to have significant impacts on U.S. agricultural exports and imports." Copyright (c) 2009 Canadian Agricultural Economics Society.

Suggested Citation

  • Jungho Baek & Won W. Koo, 2009. "Assessing the Exchange Rate Sensitivity of U.S. Bilateral Agricultural Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 187-203, June.
  • Handle: RePEc:bla:canjag:v:57:y:2009:i:2:p:187-203
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    References listed on IDEAS

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    Cited by:

    1. Marilyne Huchet-Bourdon & J. Korinek, 2011. "To what extent do exchange rates and their volatility affect trade ?," Post-Print hal-00729403, HAL.
    2. Stephen Devadoss & Amy Hilland & Ron Mittelhammer & John Foltz, 2014. "The effects of the Yuan-dollar exchange rate on agricultural commodity trade between the United States, China, and their competitors," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 23-37, November.
    3. Geraldo Moreira Bittencourt & Antônio Carvalho Campo, 2014. "Efeitos Da Instabilidade Da Taxa De Câmbio No Comércio Setorial Entre Brasil E Seus Principais Parceiros Comerciais," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41th Brazilian Economics Meeting] 105, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

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