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Third-Country Effects on the Market Shares of U.S. Wheat in Asian Countries

Published online by Cambridge University Press:  28 April 2015

Hyun J. Jin ,
Guedae Cho  and
Won W. Koo
Hyun J. Jin
Affiliation:
Center for Agricultural Policy and Trade Studies, Department of Agribusiness & Applied Economics, North Dakota State University, Fargo, ND
Guedae Cho
Affiliation:
Center for Agricultural Policy and Trade Studies, Department of Agribusiness & Applied Economics, North Dakota State University, Fargo, ND
Won W. Koo
Affiliation:
Center for Agricultural Policy and Trade Studies, Department of Agribusiness & Applied Economics, North Dakota State University, Fargo, ND
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Abstract

An import demand model, augmented with third-country effect variables, is developed to examine the effects of strong U.S. dollar, volatility of the U.S. dollar, and competition among the exporting countries on the shares of U.S. wheat in Asian markets. In the empirical model, the dependent variable is the market shares of U.S. wheat. Explanatory variables include wheat prices of exporting countries, exchange rates between the importing and exporting countries, and volatilities of the exchange rates. Panel estimation results show that the U.S. currency value and volatility, Australian wheat price, and the volatilities of Canadian and Australian currency values have significant effects on U.S. market shares.

Keywords

exchange rateinternational grain trademarket sharepanel analysispanel unit-root testthird country effectF14Q17
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 3 , December 2004 , pp. 797 - 813
Copyright
Copyright © Southern Agricultural Economics Association 2004

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