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.
Document Type: Research Article
Affiliations: 1: Department of Agribusiness and Applied Economics,North Dakota State University, 614A Barry Hall, NDSU Dept. 7610FargoND 58108-6050, USA 2: USA Poultry and Egg Export Council, 2300 West Park Place Boulevard, Suite 100, Stone MountainGeorgia 30087, USA
Publication date: October 1, 2011