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The effect of exchange rate volatility on U.S. bilateral trade with Africa: A symmetric and asymmetric analysis

Author

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  • Bahmani-Oskooee, Mohsen
  • Arize, Augustine C.

Abstract

The impact of exchange rate volatility on U.S. trade with the world or on U.S. trade with major partners has been assessed by many researchers, but none have considered the case of U.S. trade with African nations. We fill this gap by assessing the symmetric and asymmetric impact of the real bilateral exchange rate volatility between the U.S. dollar and each African partner’s currency on the U.S. trade flows with each of the 20 partners from Africa. We found asymmetric short-run effects of exchange rate volatility on almost all U.S. exports to and imports from each of the 20 countries. In addition, significant long-run asymmetric effects were discovered in the case of U.S. exports to 15 countries and U.S. imports from 12 countries. Our findings are partner-specific.

Suggested Citation

  • Bahmani-Oskooee, Mohsen & Arize, Augustine C., 2022. "The effect of exchange rate volatility on U.S. bilateral trade with Africa: A symmetric and asymmetric analysis," Economic Systems, Elsevier, vol. 46(1).
    • Handle: RePEc:eee:ecosys:v:46:y:2022:i:1:s0939362521000273
    DOI: 10.1016/j.ecosys.2021.100879
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    References listed on IDEAS

    as
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    Cited by:

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    2. Javed Iqbal & Sitara Jabeen & Misbah Nosheen & Mark Wohar, 2024. "The Asymmetric Effects of Exchange Rate Volatility on Pakistan–Japan Commodity Trade: Evidence from Non-linear ARDL Approach," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 31(3), pages 657-732, September.

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    More about this item

    Keywords

    Exchange rate volatility; U.S. trade flows; 20 African partners; Asymmetry effects;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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