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Modeling the Effects of Exchange Rate Volatility on Thai Rice Exports

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  • Molina, Imelda R.
  • Mohanty, Samarendu
  • Pede, Valerien O.
  • Valera, Harold Glenn A.

Abstract

This paper investigates the effects of exchange rate volatility on the rice export flows of Thailand to its major trading partners namely South Africa, China, United States of America, Indonesia, Singapore and Japan for the period 2001:1−2012:12. We use a six-month moving sample standard deviation of the growth of the real exchange rate which is then tested in a model of Thai milled rice exports. Cointegration and error-correction models are used to obtain the estimates of the cointegrating relations and the short-run dynamics, respectively. The results obtained in this paper, on the whole, provide evidence that the real exchange rate volatility has a significant negative effect on the volume of Thai rice exports.

Suggested Citation

  • Molina, Imelda R. & Mohanty, Samarendu & Pede, Valerien O. & Valera, Harold Glenn A., 2013. "Modeling the Effects of Exchange Rate Volatility on Thai Rice Exports," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150429, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150429
    DOI: 10.22004/ag.econ.150429
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    Cited by:

    1. Luo, Ji & Williams, Gary W., 2015. "The Impacts of Chinese Exchange Rate Policy on World Soybean and Products Markets," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205075, Agricultural and Applied Economics Association.
    2. Gary W. Williams & Ji Luo, 2017. "Exchange Rate Policy and Global Supply Chains: The Case of the Chinese Renminbi and Global Soybean and Soybean Product Markets," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 177-198.
    3. Sirikul Tulasombat & Somchai Ratanakomut, 2015. "The Effect of Exchange Rates on Agricultural Goods for Export: A Case of Thailand," Information Management and Business Review, AMH International, vol. 7(1), pages 1-11.

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    Demand and Price Analysis; International Relations/Trade;

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