THIRD COUNTRY EFFECTS ON U.S. WHEAT EXPORT PERFORMANCE IN ASIAN COUNTRIES

This study examines third country effects on U.S. wheat export performance in Asian countries. An import demand model is developed to analyze the impacts of price competitiveness, exchange rates, and exchange rate volatilities on U.S. wheat market shares. The United States competes with Australia and Canada in the Asian wheat market. Empirical results show that two factors, Australian wheat price and U.S. dollar values against the Asian countries' currencies, have significant effects on U.S. market shares in this region. Furthermore, exchange rate risks between the exporting and importing countries are found to be important.international grain trade, market share, exchange rate, panel analysis., International Relations/Trade,

NOMINAL EXCHANGE RATE MISALIGNMENT: IS IT PARTICULARLY IMPORTANT TO AGRICULTURAL TRADE?

This paper examines whether exchange rate misalignment negatively affects agricultural trade, compared to other industry sectors. Nominal exchange rate misalignment is obtained from the percentage deviation of real exchange rates from their long-run equilibrium based on the theory of purchasing power parity. In order to explore this issue, a bilateral trade matrix involving trade flows between 10 developed countries is constructed. Using panel data analysis, a gravity model is estimated for 4 industry sectors over the period 1974-1999. The study finds that over-valuation (under-valuation) of the nominal exchange rate negatively (positively) affects export performance of the agricultural sector in particular. In the large-scale manufacturing sectors considered in this paper, exports are not significantly affected by exchange rate misalignment.exchange rate misalignment, agricultural trade, gravity model, International Relations/Trade,

THE EFFECT OF EXCHANGE RATE VOLATILITY ON WHEAT TRADE WORLDWIDE

A modified gravity-type model was employed to evaluate the effect of exchange rate volatility on wheat exports worldwide. Special attention was given to the econometric properties of the gravity model within panel framework. Short and long-term measures of exchange rate volatility were constructed and compared. Both measures of exchange rate volatility have exhibited a negative effect on world wheat trade and the long-term effect was even larger. This result implies that exchange rate volatility is an important factor in explaining the trade pattern of wheat trade worldwide. Keywords: wheat, export, exchange rate, volatility, gravity model, and panel data.wheat, export, exchange rate, volatility, gravity model, and panel data., International Relations/Trade,

THE EFFECT OF EXCHANGE RATE VOLATILITY ON WHEAT TRADE WORLDWIDE

A modified gravity-type model was employed to evaluate the effect of exchange rate volatility on wheat exports worldwide. Special attention was given to the econometric properties of the gravity model within a panel framework. Short and long-term measures of exchange rate volatility were constructed and compared. Both measures of exchange rate volatility exhibited negative effects on world wheat trade, with even greater effects in the long-term measure. This result implies that exchange rate volatility is an important factor in explaining the trade pattern of wheat worldwide.wheat, export, exchange rate, volatility, gravity model, and panel data., International Relations/Trade,

Utilizing University-based Enterprise to Foster Industry-Academia Collaboration in the Field of Product Development

University-based enterprise (UBE) system has been adopted and implemented in diverse fields focusing on practice-based learning. The aim of the presentation is to introduce the UBE system integrated into product development course and active collaborations with regional government and other companies to enhance students’ practical abilities. Presented are the UBE system and two cases utilizing the system for product development education

EFFECTS OF THE CANADIAN WHEAT BOARD ON THE U.S. WHEAT INDUSTRY

The practices of the Canadian Wheat Board (CWB) are an important issue in U.S. - Canada trade disputes and WTO negotiations. This study analyzes the CWB?s effect on U.S. producers by reviewing findings from previous research and developing models to analyze CWB wheat exports to the United States and the competitive structure of Canadian wheat exports in the world market. U.S. grain producers could benefit from the removal of the CWB as the United States could become more competitive in export markets. However, elimination of the CWB could also result in an increase in Canadian wheat exports to the United States as Canadian producers near the border could sell directly to the United States to take advantage of market opportunities. The net effect is difficult to quantify. The net benefits may be significant in the short run, but reduced significantly in the long run. Similarly, if Canada reforms its wheat board by eliminating trade-distorting subsidies, the United States may increase its exports and Canadian exports to the United States may increase. The net benefits from reforming the CWB could be greater than those from eliminating it. However, the United States could benefit the most from complete elimination of state trading enterprises (STEs), since they have elements distorting trade flows and the United States competes with several STEs in the world wheat market.Canadian Wheat Board, state trading enterprises, price discrimination, wheat exports, Crop Production/Industries, International Relations/Trade,