Is Exchange Rate Pass‐Through in Pork Meat Export Prices Constrained by the Supply of Live Hogs?

15 Pages Posted: 24 Apr 2020

Date Written: November 2007

Abstract

The impact of lags in the production and marketing of agricultural products on the degree of exchange rate pass‐through in export prices is investigated. The predictions of the theoretical model are tested by investigating Canadian pork export prices in the United States and Japan. The empirical methodology accounts for unit root and cointegration using the dynamic seemingly unrelated regression framework and a minimum distance estimator. Predetermined hog supplies have a statistically significant impact on export prices of two out of three Canadian provinces. The degree of misspecification involved with standard pass‐through models that do not account for production lags is also illustrated.

Keywords: Canadian pork exports, dynamic seemingly unrelated regression, exchange rate pass-through, minimum distance estimator, production lags

Suggested Citation

Gervais, Jean-Philippe and Khraief, Naceur, Is Exchange Rate Pass‐Through in Pork Meat Export Prices Constrained by the Supply of Live Hogs? (November 2007). American Journal of Agricultural Economics, Vol. 89, Issue 4, pp. 1058-1072, 2007, Available at SSRN: https://ssrn.com/abstract=3583781 or http://dx.doi.org/10.1111/j.1467-8276.2007.01030.x

Jean-Philippe Gervais (Contact Author)

Université Laval

2214 Pavillon J-A. DeSeve
Quebec, G1K 7P4
Canada

Naceur Khraief

Laval University - Economics ( email )

Quebec G1K 7P4
Canada

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