Pricing-to-Market and Exchange Rate Pass-Through in the U.S. Broiler Meat Export Markets

The conventional estimation method of the pricing-to-market (the PTM) model in the international trade literature is a within model of panel regression of export prices on exchange rates with time and country dummies. Previous studies have found a significant coefficient parameter in exchange rate variable, which is only indicative of short-run pricing-to-market for multiple export destinations rather than long-run pricing behavior. This paper examines a long-run pricing-to-market for U.S. broiler meat export markets, using “between” panel specification. Findings indicate that the U.S. pricing-to-market behavior of exporters is both transient and persistently long. These results clearly imply that the implementation of a long-run pricing-to-market strategy in the U.S. broiler meat exports mitigates the rising imbalance between the domestic production and consumption via incomplete exchange rate pass-through.

ifamr, ifama
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Publication Type:
Journal Article
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ISSN #: 1559-2448 (Other)
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Published in:
International Food and Agribusiness Management Review, 18, A
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JEL Codes:
C23 F31 Q17
The International Food and Agribusiness Management Review is published quarterly by the International Food and Agribusiness Management Association.
Series Statement:
Volume 18
Issue A

 Record created 2017-04-01, last modified 2020-10-28

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