Pass-Through Elasticity, Substitution and Market Share: the Case for Sheep Meat Exports

Minsoo Lee and Moonjoong Tcha

The Journal of International Trade & Economic Development, 2005, vol. 14, issue 2, 209-228

Abstract: This paper empirically examines the exchange rate pass-through elasticity, using sheep meat exports from the two major exporters, Australia and New Zealand. The results show the coexistence of incomplete and complete pass-through in the international sheep meat industry. The Australian sheep meat exporters have a relatively smaller market share than New Zealand and are not able to exercise monopoly power. New Zealand producers, on the other hand, can increase their mark-ups in those destination countries where they have a large market share.

Keywords: Exchange rate; market share; pass-through elasticity (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1080/09638190500093380

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