The exchange rate pass-through into import prices: the case of Japanese meat imports

Abstract

Japan is a traditional net importer of food products in general and meat products in particular. Japanese meat imports come from a few countries thus making Japan potentially very sensitive to the swings in one or a few bilateral exchange rates. One of the key contributions of this article is the use of commodity (meats in this case) imports weighted exchange rates in the analysis. The standard practice in previous international agricultural trade studies related to either exchange rate pass-through or pricing to market was to use the aggregate trade weighted exchange rates usually provided by the Central Bank authorities or sources. Beef and poultry import prices indicate partial exchange rate pass-through while import prices of pork indicate zero exchange rate pass-through, primarily due to gate price policy system applied to pork imports. In terms of competitiveness, these results suggest relatively more competitive markets among poultry importing firms, somewhat competitive markets among beef importing firms, while competitiveness of pork importing firms could not be assessed due to existing import policies.

Pricing to market behaviour of India's high value agri‐food exporters: an empirical analysis of major destination markets

“…() made use of both the nominal as well as real exchange rates in their analysis. Nonetheless, Miljkovic and Zhuang () in their study for Japan used commodity‐specific (imports) trade‐weighted exchange rates. This specific type of exchange rate model was different from what earlier studies used as exchange rates, i.e., in earlier studies exchange rates were aggregate trade‐weighted exchange rates provided by the Central Bank authorities or sources.…”

“…Finally, in addition to the above nominal and real exchange rates, we incorporate the commodity‐specific (export) trade‐weighted exchange rate, as developed by Goldberg () and a variant applied by Miljkovic and Zhuang (). To calculate the commodity‐specific (export) trade‐weighted exchange rate, we use the real exchange rates computed and the weights of each importer in the following formula: where is the export weighted (real) exchange rate for commodity p at time period t (here commodity p refers to cereal preparations, dairy, fresh onion, groundnut, and guar gum products); is the export weight assigned to the importing country i ; and is the real exchange rate between India and country i .…”

A Tale of Pork Prices: Evasion and Attenuation of a Japanese Tariff

“…In an early study, Kimura et al (1997) use the import price deflator for livestock products -more relevant food category -and report the estimate of 0.71. Miljkovic and Zhuang (2007) focus on even narrower categories: beef, pork, and poultry. The data source, however, is the Japanese trade statistics, where declared values for pork are highly susceptible to misreporting.…”

Effects of Yuan–Dollar Exchange Rate Changes on World Cotton Markets

“…Devadoss (1985) is one of the earliest studies to model the pass-through impacts of exchange rates using a structural econometric model. Studies that used reduced-form econometric models include Miljkovic et al (2003) and Miljkovic and Zhuang (2011). Miljkovic et al (2003) analyzed the impacts of exchange rates on the export prices of US beef, pork, and poultry, and also examined the effects of GATT and NAFTA agreements on exchange rate passthrough for these US commodities.…”