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

MinKyoung Kim and Won W. Koo

No 23589, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: This study divides the U.S. economy into the agricultural and industrial sectors and compares the degree of 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 that on the industrial sector. This study examines a fundamental question about the role of the exchange rate in the two sectors. The exchange rate is exogenous in the agricultural sector, while being endogenous in the industrial sector.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 25
Date: 2002
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaae:23589

DOI: 10.22004/ag.econ.23589

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