CINTRAFOR
  • Home
  • Who We Are
  • Research
  • Education
  • Trade Trends
    • Interactive Trade Data
  • Projects
    • Wood Pellet
    • Mass Timber Demand
    • Pure Maple Syrup
  • Home
  • Who We Are
  • Research
  • Education
  • Trade Trends
    • Interactive Trade Data
  • Projects
    • Wood Pellet
    • Mass Timber Demand
    • Pure Maple Syrup
  • Home
  • Who We Are
  • Research
  • Education
  • Trade Trends
    • Interactive Trade Data
  • Projects
    • Wood Pellet
    • Mass Timber Demand
    • Pure Maple Syrup

Archived Working Papers:

Research at CINTRAFOR offers a wealth of education and papers. 

Locations

Africa Alaska Argentina Asia-Pacific Brazil Canada Chile China Europe India Indonesia Italy Japan Malaysia North America Pacific Northwest Pacific Rim Russia Vietnam South Korea Taiwan Tropical United States Washington State

Categories

Bioenergy Biofuel Charcoal Climate Construction Decking Distributors Douglas Fir E-Commerce Energy Exchange Rates Export Export Ban Furniture Grading Systems Hardwood Housing Illegal Logging Import International Trade Log Scaling Lumber Manufacturing Millwork Paper Pulp Renewable Sawmills Sector Profile Softwood Substitution Suppliers Tariff Timber Trade Restriction Wastepaper Wood Chip Wood Products
Back to Blog

The Role of Exchange Rates in Canadian - U.S. Lumber Trade

1/1/1986

 

Authors: Darius M. Adams, Bruce A. McCarl, and Lalehrokh Homayounfarrokh

​Executive Summary
This paper employs graphical analysis, simple statics and an econometric model to examine the impacts of exchange rate on consumption, production, prices and bilateral trade flows I the Canadian—U.S. lumber market.  Based on annual data for the 1950-1983 period, the econometric model is comprised of a U.S. demand relation and supply, capacity, and stumpage price relations for three U.S. regions and Canada.  Analysis with the model indicates short-term elasticities with respect to exchange rate (expressed as $C/$US) of less than .1 for U.S. consumption, roughly -.3 for U.S. delivered price and .5 for import volume.  The elasticity of Canadian market share was found to be in the range of .4 to .6.  The greatest Canadian market share expansion (from roughly 20 to 28 percent) and rise in U.S. dollar strength occurred during the years 1975-1979.  An hypothetical simulation of this period, under the assumption of no increase in the nominal exchange rate, yielded a reduction in Canada’s 1979 share to 25%, roughly a 40 percent reduction in share growth rate.  Both elasticity and simulation results indicate that exchange rate has been an important, but by no means the sole, factor in recent expansion of Canada’s share in U.S. lumber markets.
wp08_the_role_of_exchange_rates_in_canadian-u.s._lumber_trade__1986_.pdf
File Size: 216 kb
File Type: pdf
Download File

0 Comments
read more

Home

WHO WE ARE

Trade trends

Research

EDUCATION

Data

© 2019 CINTRAFOR | University of Washington