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Exchange rate volatility and US commodity trade with the rest of the world

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  • Mohsen Bahmani-Oskooee
  • Zohre Ardalani
  • Marzieh Bolhasani

Abstract

Exchange rate volatility is argued to affect the trade flows negatively and positively. Indeed, empirical studies that have addressed the issue have supported both effects. These studies have used aggregate trade flows data either between one country and the rest of the world or between two countries at the bilateral level. Studies that have disaggregated trade data by industry are rare. Thus, we extend the literature by looking at the experiences of 66 American industries that trade with the rest of the world using monthly data. In most cases, trade flows are not affected by GARCH-based volatility of the real effective exchange rate of the dollar.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Zohre Ardalani & Marzieh Bolhasani, 2010. "Exchange rate volatility and US commodity trade with the rest of the world," International Review of Applied Economics, Taylor & Francis Journals, vol. 24(5), pages 511-532.
    • Handle: RePEc:taf:irapec:v:24:y:2010:i:5:p:511-532
    DOI: 10.1080/02692171.2010.483466
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    References listed on IDEAS

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    Cited by:

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    2. Mohsen Bahmani-Oskooee & Dan Xi, 2014. "Economic Uncertainty, Monetary Uncertainty, and the Demand for Money: Evidence From Asian Countries," Australian Economic Papers, Wiley Blackwell, vol. 53(1-2), pages 16-28, June.
    3. Abel Mwanyungwe, 2017. "Exchange Rate Volatility and Malawi¡¯s Tobacco Exports to The United Kingdom and The United States," Applied Economics and Finance, Redfame publishing, vol. 4(1), pages 149-168, January.
    4. Bahmani-Oskooee, Mohsen & Harvey, Hanafiah & Hegerty, Scott W., 2014. "Exchange rate volatility and Spanish-American commodity trade flows," Economic Systems, Elsevier, vol. 38(2), pages 243-260.
    5. Mohsen Bahmani-Oskooee & Ali M. Kutan & Dan Xi, 2013. "The impact of economic and monetary uncertainty on the demand for money in emerging economies," Applied Economics, Taylor & Francis Journals, vol. 45(23), pages 3278-3287, August.
    6. Yusaku Nishimura & Bianxia Sun, 2018. "China’s Exchange-Rate Regime Reform and Trade Between China and the Eurozone," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(2), pages 450-467, January.

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