The Agri-Monetary System and Agricultural Trade Flows within the EC.

Despite self-sufficiency exceeding 100 percent, West Germany has continued to import wheat from its EC partners. One factor which may play a role in these flows is the agri-monetary system. In a comparative static framework, hypotheses are formulated regarding the impact of agri-monetary changes, for example monetary compensatory amount dismantling, on intra-EC trade flows. These hypotheses are tested using data on West German wheat imports from France. Based on the results, it is not possible to reject the hypothesis that the agri-monetary system has an influence on agricultural trade flows in the European Community. Copyright 1989 by Oxford University Press.