Open AccessInventories of Asian textile producers, US cotton exports, and the exchange rate
Author(s) -
Nazif Durmaz
Publication year - 2014
Publication title -
panoeconomicus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.289
H-Index - 14
eISSN - 2217-2386
pISSN - 1452-595X
DOI - 10.2298/pan1404397d
Subject(s) - depreciation (economics) , exchange rate , china , economics , stock (firearms) , consumption (sociology) , agricultural economics , monetary economics , microeconomics , geography , social science , archaeology , sociology , financial capital , capital formation , profit (economics)
This paper estimates exchange rate sensitivity since the 1970s of US cotton exports to three textileproducers with floating or regularly adjusting exchange rates: Bangladesh, Indonesia, and Thailand.The import market model includes mill use, US production cost, an alternate supply, and the Asianfinancial crisis. Exchange rate behavior and sensitivity varies considerably across the threeimporters. Aggregation of the three importers in fact hides market behavior. Changes in the rate ofdepreciation have stronger effects than depreciation itself.