The effect of exchange rates on southern pine exports

Changes in exchange rates affect southern pine exports by changing the cost of southern wood in foreign markets. A strong dollar discourages exports; a weak dollar encourages exports. A simple econometric export market model is developed to determine whether changes in the exchange rates in foreign...

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Bibliographic Details
Published in:Forest products journal 2003-10, Vol.53 (10), p.19-23
Main Authors: WISDOM, H. W, GRANSKOG, J. E
Format: Article
Language:English
Subjects:
American dollar
Applied sciences
Economic aspects
Economic models
Exact sciences and technology
Floating exchange rates
Foreign exchange
Foreign exchange rates
Forest products
Forest products industry
GDP
Gross Domestic Product
Independent variables
International trade
Lumber industry
Pine
Polymer industry, paints, wood
Preservatives
Prices and rates
Statistical analysis
Studies
US exports
Variables
Wood
Wood products
Wood. Paper. Non wovens
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Summary:Changes in exchange rates affect southern pine exports by changing the cost of southern wood in foreign markets. A strong dollar discourages exports; a weak dollar encourages exports. A simple econometric export market model is developed to determine whether changes in the exchange rates in foreign markets of southern pine products have, in fact, led to significant changes in southern pine exports. The results confirm that exchange rates are important determinants of southern pine exports. Per-capita income in foreign markets and domestic southern pine relative prices are also important determinants of exports. The estimated model can be used to predict the response of southern pine exports to exchange rate movements. The results also indicate that it is not necessary to construct a special southern pine exchange rate index based on southern pine export markets. The Federal Reserve Board broad index serves quite well as a predictor of the effect of exchange rate movements on southern pine exports. [PUBLICATION ABSTRACT]
ISSN:0015-7473
2376-9637