HOW DIFFERENTLY AGRICULTURAL AND INDUSTRIAL SECTORS RESPOND TO EXCHANGE RATE FLUCTUATION?

MinKyoung Kim and Won W. Koo

No 19635, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This study divides the U.S. economy into the agricultural and industrial sectors and compares the degree of the involvement of exchange rates in each sector without specifying the rigid assumption of either exogeneity or endogeneity of exchange rates. Both short- and long-run impacts of shocks in the exchange rate are found to be significant. However, the effect of an exchange rate shock on the agricultural sector is larger than the industrial sector. This study fulfills a fundamental question about the role of exchange rate between the two sectors. The exchange rate is exogenous in the agricultural sector, while being endogenous in the industrial sector.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 29
Date: 2002
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19635

DOI: 10.22004/ag.econ.19635

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