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Are Agri-food Exports any Special? Exchange Rate Nonlinearities in European Exports to the US

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  • Fedoseeva, Svetlana

Abstract

Using aggregated EMU exports to the US as an example, VERHEYEN (2013a) showed, that in the long run exports react to exchange rate changes in a nonlinear way. This paper tests whether this holds true for agri-food exports as well. To address this question a partial sum decomposition approach and the NARDL framework of SHIN et al. (2013) is applied to the aggregated agri-food exports of eleven European countries to the US, which is currently the major partner of the EU in agricultural trade. The outcomes suggest, that the exchange rate nonlinearities are even more pronounced in agri-food than in total exports. European exporters seem to benefit more from Euro depreciation, than its appreciation harms them. These findings might be interpreted as a sign of pricing strategies application (e.g., pricing-to-market) to the European agri-food exports. Am Beispiel aggregierter Exporte aus dem Euroraum in die USA zeigte VERHEYEN (2013a), dass Exporte in der langen Frist in nichtlinearer Weise auf Veränderungen des Wechselkurses reagieren. In diesem Artikel wird getestet, ob dies auch für Agrar- und Lebensmittelexporte gilt. Um diese Fragestellung zu untersuchen, wird der Teilsummenzerlegungsansatz und das NARDL-Modell von SHIN et al. (2013) auf die aggregierten Agrar- und Lebensmittelexporte elf europäischer Länder in die USA, die derzeit der wichtigste Partner der EU im Agraraußenhandel sind, angewendet. Die Ergebnisse deuten darauf hin, dass Wechselkursnichtlinearitäten für Agrarexporte sogar noch ausgeprägter sind als für die gesamten Exporte. Europäischen Exporteuren scheinen Abwertungen des Euro in stärkerem Maße zu nutzen, als ihnen Aufwertungen schaden. Dies lässt sich als Anzeichen für die Anwendung von Preissetzungsstrategien (z. B. Pricingto- Market) bei europäischen Agrar- und Lebensmittelexporten interpretieren.

Suggested Citation

  • Fedoseeva, Svetlana, 2014. "Are Agri-food Exports any Special? Exchange Rate Nonlinearities in European Exports to the US," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(04), pages 1-12, December.
    • Handle: RePEc:ags:gjagec:253197
    DOI: 10.22004/ag.econ.253197
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