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The effect of exchange rate volatility on Turkish and Georgian grain trade

By: Contributor(s): Material type: TextPublication details: Tbilisi (Georgia) CIMMYT : 2004Description: p. 416Subject(s): DDC classification:
  • 633.1147 BED
Summary: Revaluation or devaluation of a currency shows its "ups and downs" value with respect to other countries' currencies. Any change of the rate can significantly impact the import-export of a specific product as well as the fiscal deficit of a country. That is why a smother international market structure requires a stable currency. Within this context, this study investigates the effects of exchange rate volatility on Turkish and Georgian foreign grain trade. A mathematical model is constructed to mimics Schuh's (1974) model in which the US agriculture was analyzed. More specifically, a model with Cobb-Douglas utility function will be used under a seemingly unrelated regression procedure. Foreign demand for Turkish and Georgian grains and their domestic demand for foreign grains are taken as dependent variables while the exchange rate, product prices, income of consumers and etc. are taken as independent variables. Solving the model will give the effect of exchange rate volatility on Turkish and Georgian intemational grain trade.
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Conference proceedings CIMMYT Knowledge Center: John Woolston Library CIMMYT Publications Collection 633.1147 BED (Browse shelf(Opens below)) 1 Available 7G630072
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Abstract only

Revaluation or devaluation of a currency shows its "ups and downs" value with respect to other countries' currencies. Any change of the rate can significantly impact the import-export of a specific product as well as the fiscal deficit of a country. That is why a smother international market structure requires a stable currency. Within this context, this study investigates the effects of exchange rate volatility on Turkish and Georgian foreign grain trade. A mathematical model is constructed to mimics Schuh's (1974) model in which the US agriculture was analyzed. More specifically, a model with Cobb-Douglas utility function will be used under a seemingly unrelated regression procedure. Foreign demand for Turkish and Georgian grains and their domestic demand for foreign grains are taken as dependent variables while the exchange rate, product prices, income of consumers and etc. are taken as independent variables. Solving the model will give the effect of exchange rate volatility on Turkish and Georgian intemational grain trade.

English

0409|AGRIS 0401|AL-Wheat Program

Juan Carlos Mendieta

CIMMYT Publications Collection

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