Dynamic and Stochastic Structures of U.S. Cotton Exports and Mill Demand

Date

2006

Authors

Fadiga, Mohamadou

Journal Title

Journal ISSN

Volume Title

Publisher

Journal of Agribusiness

Abstract

This study employs a structural timeRseries method to model and estimate U.S. cotton exports and mill use. The results show that the stochastic process governing coUon export fluctuations is transitory, while the process pertaining to mill use has transitory, seasonal, and secular origins. The estimated structural relationships after accounting for the unobserved components indicate U.S. cotton exports respond directly to higher international price relative to domestic price of cotton, while mill use responds directly to U.S. textile output price and cotton-ta-polyester price ratio. Exchange rate volatility and the U.S. Export Enhancement Program have no significant effect on cotton exports.

Description

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Citation

Fadiga, M. “Dynamic and Stochastic Structures of U.S. Cotton Exports and Mill Demand.” Journal of Agribusiness, 241 (1, 2006): 41-60.