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Assessing the Exchange Rate Sensitivity of Bilateral Agricultural Trade in Visegrad Countries

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  • Jana Šimáková

    (Department of Finance and Accounting, School of Business Administration, Silesian University)

Abstract

This paper examines short-term and long-term effects of exchange rate changes on bilateral agricultural foreign trade in the Visegrad countries. Johansen cointegration test is employed to analyze the long-term relationship and VEC model to explore the short-term effects of exchange rate. Dataset covers period 1999 - 2014. Agricultural product groups are based on the SITC classification. Results show only some agricultural sectors significantly connected with exchange rate movements in the long-term. Effects of currency depreciation are ambiguous and cannot be generalized across the analyzed product categories but increasing in particular trade balances after currency depreciation dominates its decreasing.

Suggested Citation

  • Jana Šimáková, 2016. "Assessing the Exchange Rate Sensitivity of Bilateral Agricultural Trade in Visegrad Countries," Working Papers 0033, Silesian University, School of Business Administration.
    • Handle: RePEc:opa:wpaper:0033
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    exchange rate; agricultural sector; trade balance; cointegration; Visegrad;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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