EXCHANGE RATE DEPRECIATION AND COSTS OF AGRICULTURAL INPUTS IN SOUTH AFRICA

G. F. Liebenberg, F. L. Vivier and J. A. Groenewald

Agrekon, 1991, vol. 30, issue 01

Abstract: Exchange rate depreciation was isolated from other economic influences to measure its impact on retail prices of groups of agricultural inputs in South Africa. The period selected was one of generally declining exchange rate of the Rand. Serial correlation problems were overcome by a combination of the Hildreth-Lu procedure and weighted first differences. Tractor prices reacted within the same quarter, as well as the following two quarters. Prices of other input groups reacted between the first and third quarter following depreciation, with elasticities varying between -0,090 and -0,698. Some effects were of an indirect nature. Statutory administrated prices do not seem to react differently to exchange rate depreciation than prices formed by pure business decisions.

Keywords: Agricultural and Food Policy; International Relations/Trade (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267346

DOI: 10.22004/ag.econ.267346

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