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Exchange rate and U.S. softwood plywood import from Brazil

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  • Assogba, Noel Perceval
  • Zhang, Daowei

Abstract

In this paper, we investigate the effect of the exchange rate on U.S. softwood plywood imports from Brazil between 2010 and 2021. Using the Equilibrium Displacement Model, we find that the pass-through effect of the U.S. Dollar's appreciation is more perceptible to U.S. consumers when facing a relatively elastic export supply curve from Brazil. Our results suggest that although the U.S. Dollar's strengthening against the Brazilian Real had a detrimental effect on domestic producers of softwood plywood, the consumer's gains more than offset those losses.

Suggested Citation

  • Assogba, Noel Perceval & Zhang, Daowei, 2023. "Exchange rate and U.S. softwood plywood import from Brazil," Forest Policy and Economics, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:forpol:v:150:y:2023:i:c:s1389934123000497
    DOI: 10.1016/j.forpol.2023.102954
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