Exchange Rates Impacts on poultry husbandry Inputs Prices

Document Type : Research Paper

Author

Associate Professor - University of Tabriz

Abstract

Exchange rate is one of the important factors which affect the prices of imported inputs like poultry husbandry inputs prices. This study develops a system of empirical models that analysis the exchange rate and the LOP effects on poultry husbandry inputs prices (maze, soybeans, barley and fish powder). To achieve the aims of study, we used vector autoregressive (VAR) model in seemingly unrelated regression (SUR) framework over the period 1381:m1–1391m12. Dichey-Fuller unit root test suggested that all of the variables support the presence of unit root but the presence unit roots can be rejected in the first difference model. The results revealed that, in general, real exchange rate only affects the prices of soybeans and fish powder. 1% depreciation of the domestic money raises the prices of soybean and fish powder by 8% and 23% respectively, at the same month. Also, results imply no exchange rate pass-through and invalidity of the LOP. According to the results, preventing from intensive increase in exchange rate and its volatility are very important steps on stability of poultry husbandry subsector’s input prices.
 

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 48, Issue 1
June 2017
Pages 1-8

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