Pass-Through Elasticity, Substitution and Market Share: The Case for Sheep Meat Exports
20 Pages Posted: 6 Jun 2012
Date Written: June 6, 2005
Abstract
This paper empirically examines the exchange rate pass-through elasticity, using sheep meat exports from the two major exporters, Australia and New Zealand. The results show the coexistence of incomplete and complete pass-through in the international sheep meat industry. The Australian sheep meat exporters have a relatively smaller market share than New Zealand and are not able to exercise monopoly power. New Zealand producers, on the other hand, can increase their markups in those destination countries where they have a large market share.
Keywords: exchange rate, market share, pass-through elasticity
JEL Classification: F12, F31
Suggested Citation: Suggested Citation