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Dynamic Interrelationships between the U.S. Agricultural Trade Balance and the Macroeconomy

Published online by Cambridge University Press:  28 April 2015

Jungho Baek  and
Won W. Koo
Jungho Baek
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

The effects of the exchange rate and the income and money supply of the United States and its major trading partners on the U.S. agricultural trade balance are examined using an autoregressive distributed lag (ARDL) model. Results suggest that the exchange rate is the key determinant of the short- and long-run behavior of the trade balance. It is also found that the income and money supply in both the United States and the trading partners have significant impacts on U.S. agricultural trade in both the short and long run.

Keywords

agricultural trade balanceautoregressive distributed lag modelexchange rateincomemacroeconomymoney supplyC32F14Q17
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 3 , December 2007 , pp. 457 - 470
Copyright
Copyright © Southern Agricultural Economics Association 2007

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