EXCHANGE RATE DEPRECIATION AND COSTS OF AGRICULTURAL INPUTS IN SOUTH AFRICA / Wisselkoersdepresiasie en koste van landbou-insette in Suid-Afrika

Abstract

Exchange rate depreciation was isolated from other economic influences to measure its impact on retail prices of groups of agricultural inputs in South Africa. The period selected was one of generally declining exchange rate of the Rand. Serial correlation problems were overcome by a combination of the Hildreth-Lu procedure and weighted first differences. Tractor prices reacted within the same quarter, as well as the following two quarters, Prices of other input groups reacted between the first and third quarter following depreciation, with elasticities varying between −0,090 and −0,698. Some effects were of an indirect nature. Statutory administrated prices do not seem to react differently to exchange rate depreciation than prices formed by pure business decisions.

Samevatting

Wisselkoersdepresiasie is van ander ekonomiese invloede gelsoleer ten einde die impak daarvan op kleinhandclspryse van groepe landbou-insette in Suid-Afrika te meet. Die gekose periode was een waartydens die wisselkoers van die Rand algemeen verswak her Probleme met seriale korrelasie is oorkom deur 'n kombinasie van die Hildreth-Lu prosedure en geweegde eerste verskille. Trekkerpryse het binne die eerste, sowel as die volgende twee kwartale gereageer. Pryse van ander insergroepe her tussen die cerste en derde kwartale na depresiasie gereageer, en elastisiteitc het gewissel tussen −0,090 en −0,698. Sommige effekte het 'n indirekte aard gehad. Statutêr gead-ministreerde pryse skyn nie anders opwisselkoers veranderings te reageer as pryse wat deur suiwer besigheidsbesluite gevorm word nie