Pricing-to-Market and Exchange Rate Pass-Through in the U.S. Broiler Meat Export Markets

Sung C. No, Christopher G. Davis and David Harvey

International Food and Agribusiness Management Review, 2015, vol. 18, issue A, 12

Abstract: The conventional estimation method of the pricing-to-market (the PTM) model in the international trade literature is a within model of panel regression of export prices on exchange rates with time and country dummies. Previous studies have found a significant coefficient parameter in exchange rate variable, which is only indicative of short-run pricing-to-market for multiple export destinations rather than long-run pricing behavior. This paper examines a long-run pricing-to-market for U.S. broiler meat export markets, using “between” panel specification. Findings indicate that the U.S. pricing-to-market behavior of exporters is both transient and persistently long. These results clearly imply that the implementation of a long-run pricing-to-market strategy in the U.S. broiler meat exports mitigates the rising imbalance between the domestic production and consumption via incomplete exchange rate pass-through.

Keywords: Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; International Relations/Trade; Livestock Production/Industries; Productivity Analysis; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:207003

DOI: 10.22004/ag.econ.207003

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