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Dynamic Interrelationships between the U.S. Agricultural Trade Balance and the Macroeconomy

Published online by Cambridge University Press:  28 April 2015

Jungho Baek
Affiliation:
Center for Agricultural Policy and Trade Studies, Department of Agribusiness & Applied Economics, North Dakota State University, Fargo, ND
Won W. Koo
Affiliation:
Center for Agricultural Policy and Trade Studies, Department of Agribusiness & Applied Economics, North Dakota State University, Fargo, ND
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Abstract

The effects of the exchange rate and the income and money supply of the United States and its major trading partners on the U.S. agricultural trade balance are examined using an autoregressive distributed lag (ARDL) model. Results suggest that the exchange rate is the key determinant of the short- and long-run behavior of the trade balance. It is also found that the income and money supply in both the United States and the trading partners have significant impacts on U.S. agricultural trade in both the short and long run.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2007

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