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Exchange-Rate Volatility and Commodity Trade: The Case of the US and Italy

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  • M Bahmani-Oskooee
  • H Harvey
  • S.W. Hegerty

Abstract

In recent years, numerous empirical studies have estimated the role of exchange-rate uncertainty on different countries industry-level trade flows. These have tended to find mixed results, with the majority of industries registering no impact, and the rest split between positive and negative effects. This study extends the literature to the case of US-Italian trade, for 145 export industries and 125 import industries. Of those industries, most exhibit significant short-run responses to exchange-rate volatility, but fewer register significant long-run effects. US exports of food and imports of raw materials appear to be particularly affected by risk in the long run, while many manufactures are not.

Suggested Citation

  • M Bahmani-Oskooee & H Harvey & S.W. Hegerty, 2015. "Exchange-Rate Volatility and Commodity Trade: The Case of the US and Italy," Economic Issues Journal Articles, Economic Issues, vol. 20(2), pages 1-27, September.
    • Handle: RePEc:eis:articl:215mohsen
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    References listed on IDEAS

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    3. Anders, Sven & Fedoseeva, Svetlana, 2017. "Quality, Sourcing, and Asymmetric Exchange-Rate Pass-Through into U.S. Coffee Imports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(3), September.
    4. Abdul Rashid & Shahid Mahmood Waqar, 2017. "Exchange rate fluctuations, firm size, and export behavior: an empirical investigation," Small Business Economics, Springer, vol. 49(3), pages 609-625, October.
    5. Özge Barış-Tüzemen & Samet Tüzemen, 2021. "Revisiting The Role Of Exchange Rate Volatility In Turkey’S Exports: Evidence From The Structural Var Approach," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(231), pages 127-150, October –.

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