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Assessing the Exchange Rate Sensitivity of U.S. Bilateral Agricultural Trade

Author:
Baek, Jungho, Koo, Won W.
Source:
Canadian journal of agricultural economics 2009 v.57 no.2 pp. 187-203
ISSN:
0008-3976
Subject:
agricultural products, currency exchange rate, exports, imports, income, United States
Abstract:
This paper uses an autoregressive distributed lag approach to cointegration to examine the short- and long-run effects of exchange rate changes on bilateral trade of agricultural products between the United States and its 10 major trading partners. Results show that, in the long run, while U.S. agricultural exports are highly sensitive to bilateral exchange rates and foreign income, U.S. agricultural imports are mostly responsive to the U.S. domestic income. In the short run, on the other hand, both the bilateral exchange rates and income in the United States and its trading partners are found to have significant impacts on U.S. agricultural exports and imports.
Agid:
396841