Pricing‐To‐Market Analysis: The Case of EU Wheat Exports

Abstract The EU is a major player in the global wheat market. This paper examines the pricing behaviour of EU wheat exporters using a pricing‐to‐market ( PTM ) analysis. Wheat is an exemplary product for testing PTM theories as it is widely and frequently traded, and largely unbranded. We estimate t...

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Bibliographic Details
Published in:Journal of Agricultural Economics
Main Authors: Dawson, Philip, Gorton, Matthew, Hubbard, Carmen, Hubbard, Lionel
Other Authors: Seventh Framework Programme
Format: Article in Journal/Newspaper
Language:English
Published: Wiley 2016
Subjects:
Iceland
Online Access:http://dx.doi.org/10.1111/1477-9552.12199
https://api.wiley.com/onlinelibrary/tdm/v1/articles/10.1111%2F1477-9552.12199
https://onlinelibrary.wiley.com/doi/pdf/10.1111/1477-9552.12199
Description
Summary:Abstract The EU is a major player in the global wheat market. This paper examines the pricing behaviour of EU wheat exporters using a pricing‐to‐market ( PTM ) analysis. Wheat is an exemplary product for testing PTM theories as it is widely and frequently traded, and largely unbranded. We estimate the relationship between export unit values and exchange rates using quarterly panel data for 11 EU export destinations for 2000–2013. Results show that there is a meaningful long‐run relationship between export unit values and exchange rates, but there is little evidence of differential mark‐ups between EU export markets. Belarus and Iceland are exceptions where exporters from the EU appear to exercise local currency price stabilisation.

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