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

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.


Editor(s):
ifamr, ifama
Issue Date:
2015-07
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN #: 1559-2448 (Other)
PURL Identifier:
http://purl.umn.edu/207003
Published in:
International Food and Agribusiness Management Review, Volume 18, Special Issue A
Page range:
79-90
Total Pages:
12
JEL Codes:
C23 F31 Q17
Note:
The International Food and Agribusiness Management Review is published quarterly by the International Food and Agribusiness Management Association. www.ifama.org
Series Statement:
Volume 18
Issue A




 Record created 2017-04-01, last modified 2017-05-27

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