Int. J. of Trade and Global Markets   »   2013 Vol.6, No.4

 

 

Title: Source-differentiated analysis of exchange rate effects on US beef imports

 

Authors: Keithly G. Jones; Andrew Muhammad; Kenneth Mathews Jr.

 

Addresses:
Animal Products and Cost of Production Branch, Market and Trade Economics Division, Economic Research Service United States Department of Agriculture, Washington DC, USA
International Demand and Trade, Market and Trade Economics Division, Economic Research Service United States Department of Agriculture, Washington DC, USA
Animal Products and Cost of Production Branch, Market and Trade Economics Division, Economic Research Service United States Department of Agriculture, Washington DC, USA

 

Abstract: The non-linear Inverse Almost Ideal Demand System is used in estimating the impact of exchange rates on source-differentiated import demand for beef in the USA. We estimate scale, own and cross-price flexibilities for six major beef suppliers and the rest of the world, incorporating exchange rates exogenously. Results indicate that beef imports from Canada and ROW were own-price flexible but the remaining countries - Argentina, Brazil, Uruguay, Australia and New Zealand - were own-price inflexible. Though exchange rate pass-through differs among sources, nearly all of the exporting countries had a near complete exchange rate pass-through. All own exchange-rate effects are negative and significant, except beef imported from Uruguay while nearly all cross exchange-rate effects are insignificant.

 

Keywords: beef imports; import demand; exchange rate fluctuation; inverse AIDS; almost ideal demand system; USA; United States; price flexibility.

 

DOI: 10.1504/IJTGM.2013.056745

 

Int. J. of Trade and Global Markets, 2013 Vol.6, No.4, pp.406 - 420

 

Date of acceptance: 19 Oct 2012
Available online: 27 Aug 2013

 

 

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