The impact of multiple volatilities on import demand for U.S. commodities: the case of soybeans

Zhang, Qiang; Reed, Michael R.; Saghaian, Sayed H.

doi:10.1002/agr.20214

Cited by 10 publications

(6 citation statements)

References 22 publications

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“…This finding is irrelevant to the theory that if a country's currency depreciates then the price of foreign commodities becomes expensive for the domestic population (Krugman and Obstfeld, 2003: 327). Furthermore this finding is also not in line with Zhang et al (2010) and Muslim (2014) that soybean importers are sensitive to exchange rate risk, and the exchange rate has a negative effect on soybean imports. Domestic Output Variable (Y) has a positive and significant effect on soybean imports in ASEAN countries.…”

Section: Discussionmentioning

confidence: 64%

Effects of Nominal Exchange Rates and Domestic Outputs on Imports (Analysis of national food security commodities in ASEAN Countries)

Sentosa¹,

Akbar²

2020

Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)

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Most ASEAN countries are producing agricultural commodities in the form of; rice, maize, soybeans, sugar cane (sugar products) and cassava. However to meet domestic needs, almost all ASEAN countries import agricultural commodities. The purpose of the research is to analyze; effects of nominal exchange rates and domestic output on imports of agricultural commodities; rice, maize, soybeans, cassava and sugar in ASEAN countries. This study uses panel data of 9 ASEAN countries from 2012 to 2018. The analysis method uses panel analysis of Common Effect Model log (CEM log), Fixed Effect Model log (FEM log) and Random Effect Model log (REM log). The analysis found that the exchange rate had a positive and significant effect on the import of rice, sugar, maize, soybean and cassava in ASEAN countries. Domestic output has a positive and significant effect on imports of maize, soybean and cassava commodities and does not have a significant effect on imports of rice and sugar commodities in ASEAN countries..

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Section: Discussionmentioning

confidence: 64%

Effects of Nominal Exchange Rates and Domestic Outputs on Imports (Analysis of national food security commodities in ASEAN Countries)

Sentosa¹,

Akbar²

2020

Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)

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“…We analysed potential external drivers of volatility related to real and financial economy variables (Zhang et al 2010;Tadesse et al 2014;Baffes and Haniotis 2016) as well as to indicators of policy interventions and of exogenous events. We show that energy and financial markets, as well as unpredictable events, tend to have potentially destabilising impacts on prices, whereas policy intervention may buffer instability in grain prices.…”

Section: Discussionmentioning

confidence: 99%

On the drivers of global grain price volatility: an empirical investigation

G.¹,

Lamonaca²

2019

AGR ECON-CZECH

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Several drivers may generate market instability, but the partial contribution of different factors is still debated. We investigate how market-based drivers influence the global price volatility of three major grains: wheat, corn, barley. We adopt a Seemingly Unrelated Regression Equations model, in order to investigate potential common patterns. We compare inter-annual, intra-annual, and global volatility, to conclude on short-run and long-run dynamics of markets instability. We quantify the negative relationship linking (temporal) arbitrage and grain price volatility and conclude on the effects of supply movements on price volatility.

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“…Besides all of the above, there are also other studies that analyze the effect of price volatility in futures market, transportation cost and exchange rate volatility on agricultural trade (Kawai and Zicha, 1986;Goodwin and Schroeder, 1991;Haigh and Holt, 2000;Li, et. al., 2006;Zhang et al, 2010;Karemera, et. al., 2011;Nazlıoğlu and Erdem, 2011;Erdal et.al.,2012;Sheldon, et al, 2013).…”

Section: Previous Studiesmentioning

confidence: 99%

Relationship Between Exports Of Processed Agricultural Products and Real Exchange Rate Shocks: The Case Of Turkey

Çınar¹,

Hushmat²,

Işin³

2015

Ege Üniversitesi Ziraat Fakültesi Dergisi

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ABSTRACThis study is performed to present the effects of real exchange rate shocks on exports of processed agricultural products in Turkey. Although there are a lot of studies on this topic, but none of them has focused solely on the processed agri-products. As processed agri-products are getting more popular, with a more focused approach this study will not only enrich the literature, but also help policy-makers in devising policies. Vector Autoregressive (VAR) model is used in this study. The findings are interpreted according to the impulseresponse analysis and variance (forecast error) decomposition results. The results indicate that there is a significant relationship between real exchange rates and exports of processed agricultural products. This relationship is positive during the first quarter. However, later on, it becomes negative with a downward slope. On the other hand, the shocks of real exchange rate can explain only %0.2-0.7 of prediction error variance for exports of processed agricultural products. The findings can be useful in policy making.

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The impact of multiple volatilities on import demand for U.S. commodities: the case of soybeans

Cited by 10 publications

References 22 publications

Effects of Nominal Exchange Rates and Domestic Outputs on Imports (Analysis of national food security commodities in ASEAN Countries)

Effects of Nominal Exchange Rates and Domestic Outputs on Imports (Analysis of national food security commodities in ASEAN Countries)

On the drivers of global grain price volatility: an empirical investigation

Relationship Between Exports Of Processed Agricultural Products and Real Exchange Rate Shocks: The Case Of Turkey

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