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Export and production growth: evidence from three major wheat exporters of Australia, Canada and the United States

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  • Qing Xiao
  • Michael Reed

Abstract

This article investigates the robustness of the relationship between export and production growth for three major wheat exporters: Australia, Canada and the United States from 1966 to 2000. Combining production, international trade and development theories, a four variable (production, exports, producer price and imports) vector autoregressive moving average (VARMA) model is developed for each country. The causality results show that the hypothesis of export-led development is supported by these three major players in the international wheat trade, though a bi-directional causality is found for Canada and the USA. Variance decomposition and impulse response functions are employed to further investigate the effects of macroeconomic shocks.

Suggested Citation

  • Qing Xiao & Michael Reed, 2007. "Export and production growth: evidence from three major wheat exporters of Australia, Canada and the United States," Applied Economics, Taylor & Francis Journals, vol. 39(3), pages 309-319.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:309-319
    DOI: 10.1080/00036840500439010
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    Cited by:

    1. Anna Nowak & Monika Rozanska-Boczula & Artur Krukowski, 2020. "Competitiveness of Agriculture in New Member States of the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 160-175.
    2. Aneta Jarosz-Angowska & Marek Angowski & Magdalena Kakol & Anna Nowak & Monika Rozanska-Boczula, 2020. "Agricultural Competitive Potential and Competitive Position in the International Trade of Agricultural and Food Products in the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 779-803.

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