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Article
Are Exports a Monotonic Function of Exchange Rate Volatility: Evidence from Disaggregated Pork Exports
Canadian Journal of Economics (2007)
  • Olivier Bonroy
  • Jean-Philippe Gervais, Laval University
  • Bruno Larue, Laval University
Abstract

Production and marketing lags in agri-food supply chains often force agricultural producers and food processors to commit to output targets before prices and exchange rates are realized. A theoretical model illustrates how the processor’s degree of risk aversion and domestic sales may cause the relationship between volatility of the exchange rate and exports to be non-monotonic. The relationship between exchange rate volatility and Quebec pork exports to the U.S. and Japan is investigated using linear and non-linear estimation methods. The results support the hypothesis that the relationship between exports and volatility is non-monotonic.

Keywords
  • Exchange rate volatility,
  • non-linear flexible inference,
  • production lags,
  • pork exports.
Disciplines
Publication Date
2007
Citation Information
Olivier Bonroy, Jean-Philippe Gervais and Bruno Larue. "Are Exports a Monotonic Function of Exchange Rate Volatility: Evidence from Disaggregated Pork Exports" Canadian Journal of Economics Vol. 40 (2007)
Available at: http://works.bepress.com/jp_gervais/17/