Effects of yuan–dollar exchange rate changes on world cotton markets

Date

2020

Journal Title

Journal ISSN

Volume Title

Publisher

Cambridge University Press

Abstract

From April 2018 to August 2019, the Yuan has declined in value relative to the US dollar by 12.6%, and the effects of this decline have not been studied. This study analyzes the effects of this fall in Yuan value, in isolation of tariffs, on US, Chinese, and world cotton markets. The results show that the adverse effects of the decline in Yuan value reverberate throughout world cotton markets and exacerbate the detrimental effects of the Chinese cotton tariff.

Description

Keywords

Cotton, Exchange Rate, Spatial Equilibrium Model

Citation

Devadoss, S., & Sabala, E. (2020). Effects of yuan–dollar exchange rate changes on world cotton markets. Journal of Agricultural and Applied Economics, 52(3), 420-439. https://doi.org/10.1017/aae.2020.12

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