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Pricing-To-Market Analysis: The Case of EU Wheat Exports

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  • Philip Dawson
  • Matthew Gorton
  • Carmen Hubbard
  • Lionel Hubbard

Abstract

The EU is a major player in the global wheat market. This paper examines the pricing behavior of EU wheat exporters using a pricing-to-market (PTM) analysis. Wheat is an exemplary product for testing PTM theories as it is widely and frequently traded, and it is largely unbranded. We estimate the relationship between export unit values and exchange rates using quarterly panel data for 11 export destinations for 2000- 2013. Results show that there is a meaningful long-run relationship between export unit values and exchange rates, but there is little evidence of differential mark-ups between export markets. Belarus and Iceland are exceptions where the EU exercises local currency price stabilization.
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  • Philip Dawson & Matthew Gorton & Carmen Hubbard & Lionel Hubbard, 2017. "Pricing-To-Market Analysis: The Case of EU Wheat Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 301-315, February.
    • Handle: RePEc:bla:jageco:v:68:y:2017:i:1:p:301-315
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    File URL: http://hdl.handle.net/10.1111/1477-9552.12199
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    1. David Harvey & Carmen Hubbard & Matthew Gorton & Barbara Tocco, 2017. "How Competitive is the EU's Agri-Food Sector? An Introduction to a Special Feature on EU Agri-Food Competitiveness," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 199-205, February.

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