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Exchange rate effects: A case study of the export performance of the Swiss Agriculture and Food Sector

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  • Kohler, Andreas
  • Ferjani, Ali

Abstract

The Swiss franc appreciated strongly against the currencies of Switzerland’s most important trading partners after the global financial crisis in 2008. This has led to renewed interest in the question of how sensitive Swiss exports are with respect to exchange rate movements. We analyze this question for exports of the Swiss Agriculture and Food Sector, using both time series and dynamic panel data models based on data from 1999 to 2012. We find that in the long-run a one percent appreciation of the Swiss franc leads on average to a decrease in exports of agricultural and food products of approximately 0.9 percent. Our results suggest that on average, producers in the Swiss Agriculture and Food Sector are able to successfully avoid price competition by differentiating their products, producing high-quality products for niche markets.

Suggested Citation

  • Kohler, Andreas & Ferjani, Ali, 2015. "Exchange rate effects: A case study of the export performance of the Swiss Agriculture and Food Sector," 2015 Conference, August 9-14, 2015, Milan, Italy 212011, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212011
    DOI: 10.22004/ag.econ.212011
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    5. Michael Lamla & Andrea Lassmann, 2011. "Der Einfluss der Wechselkursentwicklung auf die schweizerischen Warenexporte: eine disaggregierte Analyse," KOF Analysen, KOF Swiss Economic Institute, ETH Zurich, vol. 5(2), pages 31-49, June.
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    Cited by:

    1. Salamat Ali, 2020. "Exchange Rate Effects on Agricultural Exports: Transaction‐Level Evidence from Pakistan," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 1020-1044, May.
    2. Salamat Ali, 2017. "Exchange Rate Effects on Agricultural Exports: Firm-level Evidence from Pakistan," Discussion Papers 2017-09, University of Nottingham, GEP.

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    Keywords

    Agricultural and Food Policy; Financial Economics; International Development;
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