VTechWorks staff will be away for the Thanksgiving holiday beginning at noon on Wednesday, November 27, through Friday, November 29. We will resume normal operations on Monday, December 2. Thank you for your patience.
 

The Exchange Rate and U.S./Canadian Relative Agricultural Prices

Simple item page
dc.contributor.authorXu, Miaoen
dc.contributor.committeechairOrden, David R.en
dc.contributor.committeememberMills, Bradford F.en
dc.contributor.committeememberPeterson, Everett B.en
dc.contributor.departmentAgricultural and Applied Economicsen
dc.date.accessioned2014-03-14T20:44:33Zen
dc.date.adate2001-09-03en
dc.date.available2014-03-14T20:44:33Zen
dc.date.issued2001-08-17en
dc.date.rdate2002-09-03en
dc.date.sdate2001-08-31en
dc.description.abstractThe law of one price (LOP) plays an important role as a building block in theories of international trade and exchange rate determination. It also serves as a measure of integration for international commodity markets. The LOP states that in competitive markets after adjustment for transportation costs and trade barriers, identical commodities sold in different countries should sell for the same price when their prices are defined in a common currency. The existing economic literature provides a vast body of theoretical and empirical investigations of the validity of the LOP. In general, previous evidence is mixed and there is no unanimous LOP support or refutation. The effects of exchange rate changes on agricultural outputs have been extensively studied, but the issue of the impacts on traded non-farm produced inputs has not been explored as much. This study investigates the impact of the exchange rate ($CN/$US) on the relative prices in U.S. and Canadian agricultural markets for five major farm outputs and four non-farm produced inputs, which are traded between these two closely integrated economies. Adherence to the LOP is evaluated by examining the pass-through effects of exchange rate changes on these prices using quarterly data. The sample covers the period of 1975 - 1999, when there were substantial exchange rate movements. Regression and cointegration techniques are utilized to estimate whether and at what rate exchange rate changes are transmitted to prices. The empirical results give rise to supportive evidence in favor of the LOP for the five farm outputs. The evidence is somewhat weaker for three of the four non-farm produced inputs, and the LOP is violated for one input.en
dc.description.degreeMaster of Scienceen
dc.identifier.otheretd-08312001-162006en
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-08312001-162006/en
dc.identifier.urihttp://hdl.handle.net/10919/34863en
dc.publisherVirginia Techen
dc.relation.haspartAll.pdfen
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subjectThe law of one priceen
dc.subjectExchange rate pass-throughen
dc.subjectUnit Rootsen
dc.subjectCointegrationen
dc.titleThe Exchange Rate and U.S./Canadian Relative Agricultural Pricesen
dc.typeThesisen
thesis.degree.disciplineAgricultural and Applied Economicsen
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen
thesis.degree.levelmastersen
thesis.degree.nameMaster of Scienceen

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
All.pdf
Size:
364.69 KB
Format:
Adobe Portable Document Format
Download

Collections

Masters Theses