IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v3y1987i2p189-206.html
   My bibliography  Save this article

The strength of the dollar: An analysis of trade-weighted foreign exchange rate indices with implications for agricultural trade

Author

Listed:
  • David Henneberry

    (Department of Agricultural Economics at Oklahoma State University)

  • Shida Henneberry

    (Department of Agricultural Economics at Oklahoma State University)

  • Luther Tweeten

    (Department of Agricultural Economics at Oklahoma State University)

Abstract

The foreign exchange value of the US dollar has had a major impact on agricultural trade flows in the 1980s. However, measurement and interpretation of the appreciation of the US dollar must be done with caution. In this article, three different methodologies (Paasche, Laspeyres, and Fisher Ideal) are used to calculate a trade weighted foreign exchange rate representing six flows of US export goods (total exports, all nonagricultural exports, all agricultural exports and wheat, corn, and soybeans individually). The indices are calculated for both real and nominal foreign exchange rates. Implications for agricultural trade are suggested by applying these estimates of the dollar appreciation to previously estimated elasticities of US agricultural export demand with respect to the foreign exchange rate.

Suggested Citation

  • David Henneberry & Shida Henneberry & Luther Tweeten, 1987. "The strength of the dollar: An analysis of trade-weighted foreign exchange rate indices with implications for agricultural trade," Agribusiness, John Wiley & Sons, Ltd., vol. 3(2), pages 189-206.
    • Handle: RePEc:wly:agribz:v:3:y:1987:i:2:p:189-206
    DOI: 10.1002/1520-6297(198722)3:2<189::AID-AGR2720030206>3.0.CO;2-J
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Schuh, G. Edward, 1984. "United States Agriculture in the World Economy," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 2(1), pages 1-8, February.
    2. Robert G. Chambers & Richard E. Just, 1981. "Effects of Exchange Rate Changes on U.S. Agriculture: A Dynamic Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 32-46.
    3. Michael T. Belongia, 1986. "Estimating exchange rate effects on exports: a cautionary note," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 5-16.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Riza Radmehr & Shida Rastegari Henneberry, 2020. "Energy Price Policies and Food Prices: Empirical Evidence from Iran," Energies, MDPI, vol. 13(15), pages 1-15, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baxter, Timothy M. & Smith, Mark E., 1987. "Exchange Rate Risk, Dollar Appreciation, And U.S. Export Credit Programs," Staff Reports 277944, United States Department of Agriculture, Economic Research Service.
    2. Guci, Ledia, 2008. "Exchange Rates and The Export Demand for U.S. Grapefruit Juice," Research papers 36816, Florida Department of Citrus.
    3. Longjiang Chen, 2011. "The effect of China's RMB exchange rate movement on its agricultural export: A case study of export to Japan," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(1), pages 26-41, January.
    4. Ashley, Richard, 2003. "Statistically significant forecasting improvements: how much out-of-sample data is likely necessary?," International Journal of Forecasting, Elsevier, vol. 19(2), pages 229-239.
    5. Ruppel, Fred J., 1984. "Export Sales And Export Shipments: Institutional Relationships And Empirical Estimation," 1984 Annual Meeting, August 5-8, Ithaca, New York 279005, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Rausser, Gordon & Hamilton, Stephen & Kovach, Marty & Stifter, Ryan, 2009. "Unintended consequences: The spillover effects of common property regulations," Marine Policy, Elsevier, vol. 33(1), pages 24-39, January.
    7. Chadee, Doren & Mori, Hiroshi, 1996. "Developments in the Japanese Beef Market Following Import Liberalisation," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(01), pages 1-12, April.
    8. Yan, Hongqiang & Goodwin, Barry K. & Caner, Mehmet, 2023. "Investigating Integration and Exchange Rate Pass-Through in World Maize Markets Using Inferential LASSO Methods," 2023 Annual Meeting, July 23-25, Washington D.C. 335707, Agricultural and Applied Economics Association.
    9. Tabakis, Nikolaos M., 2001. "A Multivariate Model for the Relationship Between Agricultural Prices and Inflation Uncertainty: Evidence Using Greek Data," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 2(1), pages 1-11, January.
    10. Torok, Steven John, 1982. "International trade in commodities and labor: the case of the importation of Mexican agricultural labor and fresh market winter tomatoes into the US, 1964-1979," ISU General Staff Papers 198201010800008550, Iowa State University, Department of Economics.
    11. Seale, James L., Jr. & Moss, Charles B., 1989. "The Overshooting Hypothesis: Are Agricultural Exports More Sensitive?," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270464, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Burakov, D., 2016. "Oil Prices, Exchange Rate and Prices for Agricultural Commodities: Empirical Evidence from Russia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(2), pages 1-15, June.
    13. Adelman, Irma & Robinson, Sherman, 1986. "The Application of General Equilibrium Models to Analyze U.S. Agriculture," CUDARE Working Papers 198352, University of California, Berkeley, Department of Agricultural and Resource Economics.
    14. Schaub, James & McArthur, W..C. & Hacklander, Duane & Glauber, Joseph & Leath, Mack & Doty, Harry, 1988. "The U.S. Soybean Industry," Agricultural Economic Reports 305423, United States Department of Agriculture, Economic Research Service.
    15. Dushmanitch, V. Y. & Darroch, M. A. G., 1991. "The Impacts Of Monetary Policy On The Maize And Beef Sectors Of South Africa I: Theoretical Foundations And Model Specification," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(3), September.
    16. Sharples, Jerry A. & Dixit, Praveen M., 1988. "Forces that Could Expand U.S. Wheat Exports: Estimates From a World Wheat Trade Model," Staff Reports 277990, United States Department of Agriculture, Economic Research Service.
    17. J. David Richardson, 1988. "Exchange Rates and U.S. Auto Competitiveness," NBER Chapters, in: Misalignment of Exchange Rates: Effects on Trade and Industry, pages 215-240, National Bureau of Economic Research, Inc.
    18. Zhengwei MA & Rui XU & Xiucheng DONG, 2015. "World oil prices and agricultural commodity prices: The evidence from China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(12), pages 564-576.
    19. M. Huchet Bourdon & C. Laroche Dupraz, 2014. "National food security: a framework for public policy and international trade," FOODSECURE Working papers 17, LEI Wageningen UR.
    20. Shalaby, Seif & Hassler, James B., 1985. "South American Countries Demand For Wheat Imports And U. S. Market Share: Sets Of Disturbance Related Functions," Staff Papers 140511, University of Nebraska-Lincoln, Department of Agricultural Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:3:y:1987:i:2:p:189-206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.