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

Author

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  • No, Sung C.
  • Davis, Christopher G.
  • Harvey, David

Abstract

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.

Suggested Citation

  • No, Sung C. & Davis, Christopher G. & Harvey, David, 2015. "Pricing-to-Market and Exchange Rate Pass-Through in the U.S. Broiler Meat Export Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-12, July.
    • Handle: RePEc:ags:ifaamr:207003
    DOI: 10.22004/ag.econ.207003
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    References listed on IDEAS

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    Cited by:

    1. Risti Permani, 2021. "FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 192-221, January.

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