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Exchange rates and foreign demand for US fresh grapefruit

Author

Listed:
  • J. Lee

    (Research Economist with the Florida Department of Citrus and a Professor of Food and Resource Economics, University of Florida, Gainesville)

  • Gary F. Fairchild

    (Associate Professor of Food and Resource Economics, University of Florida, Gainesville)

Abstract

The seemingly unrelated regression technique was used to study the relationships between exchange rates and foreign demand for US fresh grapefruit. Annual observations for the period from 1972 through 1986 were used in the analysis. Results demonstrate that (1) when studying export demand relationships, exchange rates play an important role and the deletion of exchange rates from the analysis may result in inaccurate parameter estimates; and (2) US fresh grapefruit has more than one export market, with different markets responding differently to price changes.

Suggested Citation

  • J. Lee & Gary F. Fairchild, 1988. "Exchange rates and foreign demand for US fresh grapefruit," Agribusiness, John Wiley & Sons, Ltd., vol. 4(3), pages 261-270.
  • Handle: RePEc:wly:agribz:v:4:y:1988:i:3:p:261-270
    DOI: 10.1002/1520-6297(198805)4:3<261::AID-AGR2720040305>3.0.CO;2-T
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    References listed on IDEAS

    as
    1. Maury E. Bredahl & William H. Meyers & Keith J. Collins, 1979. "The Elasticity of Foreign Demand for U.S. Agricultural Products: The Importance of the Price Transmission Elasticity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 58-63.
    2. Gardiner, Walter H. & Dixit, Praveen M, 1987. "Price Elasticity of Export Demand: Concepts and Estimates," Foreign Agricultural Economic Report (FAER) 305286, United States Department of Agriculture, Economic Research Service.
    3. 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.
    4. Paul R. Johnson, 1977. "The Elasticity of Foreign Demand for U.S. Agricultural Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(4), pages 735-736.
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