Optimal hedging decisions for Taiwanese corn traders on the way to liberalisation

This paper examines the impacts of exchange rate risk on Taiwanese traders' decisions to hedge corn imports on US futures markets. The results yield the conclusion that, in the absence of a market that provides proper tools to hedge against exchange rate risk, the Taiwanese economy is incurring an observable social loss. Thus, further liberalisation is essential. Taiwan's experiences can serve as an example for developing countries, as the world economy is becoming increasingly integrated. © 2001 Elsevier Science B.V. All rights reserved.


Issue Date:
2001-09
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/177189
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 25, Issue 2-3
Page range:
303-309
Total Pages:
8
JEL Codes:
G 10




 Record created 2017-04-01, last modified 2017-04-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)