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Exchange Rate Volatility and US Import Demand for Salmon

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  • Dengjun Zhang
  • Henry W. Kinnucan

Abstract

In this article, a risk-augmented differential demand system is developed to test the effects of exchange rate volatility (ERV) on trade. Applying the model to data on US imports of salmon from Chile, Canada, Norway, the United Kingdom, and Rest of World (ROW), results indicate ERV reduces imports. The effect, however, is modest in that the ERV elasticities are only 15% as large as price elasticities. Overall, US imports of salmon are much more sensitive to changes in relative prices and income than to changes in ERV. Bias in the estimated price and expenditure elasticities associated with omitting the ERV variables from the model in some cases is non-trivial.

Suggested Citation

  • Dengjun Zhang & Henry W. Kinnucan, 2014. "Exchange Rate Volatility and US Import Demand for Salmon," Marine Resource Economics, University of Chicago Press, vol. 29(4), pages 411-430.
    • Handle: RePEc:ucp:mresec:doi:10.1086/678931
    DOI: 10.1086/678931
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    References listed on IDEAS

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    1. Asche, Frank & Zhang, Dengjun, 2013. "Testing Structural Changes in the U.S. Whitefish Import Market: An Inverse Demand System Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(3), pages 453-470, December.
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    Cited by:

    1. Misund, Bard, 2016. "Common and Fundamental Risk Factors in Shareholder Returns of Norwegian Salmon Producing Companies," UiS Working Papers in Economics and Finance 2016/17, University of Stavanger.
    2. Andrew K.G. Tan & Steven T. Yen & Abdul Rahman Hasan, 2015. "At-Home Consumption of Fish Products in Malaysia: An Analysis of Household Expenditure Survey Data," Marine Resource Economics, University of Chicago Press, vol. 30(4), pages 417-433.
    3. Assogba, Noel Perceval & Zhang, Daowei, 2023. "Exchange rate and U.S. softwood plywood import from Brazil," Forest Policy and Economics, Elsevier, vol. 150(C).
    4. Ruth Eegunjobi & Nicholas Ngepah, 2022. "Dynamic Relationships between Seafood Exports, Exchange Rate and Industrial Upgrading," Sustainability, MDPI, vol. 14(13), pages 1-16, June.
    5. Frank Asche & Atle G. Guttormsen, 2014. "Seafood Markets and Aquaculture Production: Special Issue Introduction," Marine Resource Economics, University of Chicago Press, vol. 29(4), pages 301-304.
    6. Misund, Bård, 2018. "Common and fundamental risk factors in shareholder returns of Norwegian salmon producing companies," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 19-30.

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