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Exchange Rate Uncertainty and Agricultural Trade

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  • Guedae Cho
  • Ian M. Sheldon
  • Steve McCorriston

Abstract

Using a sample of bilateral trade flows across ten developed countries between 1974 and 1995, this article explores the effect of exchange rate uncertainty on the growth of agricultural trade as compared to other sectors. Based on a gravity model that controls for other factors likely to determine bilateral trade, the results show that real exchange rate uncertainty has had a significant negative effect on agricultural trade over this period. Moreover, the negative impact of uncertainty on agricultural trade has been more significant compared to other sectors. Copyright 2002, Oxford University Press.

Suggested Citation

  • Guedae Cho & Ian M. Sheldon & Steve McCorriston, 2002. "Exchange Rate Uncertainty and Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 931-942.
    • Handle: RePEc:oup:ajagec:v:84:y:2002:i:4:p:931-942
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00044
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