IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v22y2013i8p1183-1213.html
   My bibliography  Save this article

Exchange-rate sensitivity of commodity trade flows: Does the choice of reporting country affect the empirical estimates?

Author

Listed:
  • Mohsen Bahmani-Oskooee
  • Scott Hegerty
  • Hanafiah Harvey

Abstract

While the effects of currency fluctuations on trade have long been of interest to economic researchers, the most recent trend in the literature is to estimate commodity trade flows between pairs of countries. This raises an important question: Does it matter which country reports the data? This study investigates 96 industries that are reported both as exports by the United States and as imports by South Korea. Since export data are FOB and import data are CIF, the Korean imports are expectedly larger than the US exports. Correspondingly, our cointegration analysis produces drastically different results between specifications. Nonparametric analysis shows that the Korean imports are more sensitive to real exchange-rate fluctuations than US exports, signifying the importance of cost of insurance and freight, as well as the data's conversion into dollars.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Scott Hegerty & Hanafiah Harvey, 2013. "Exchange-rate sensitivity of commodity trade flows: Does the choice of reporting country affect the empirical estimates?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(8), pages 1183-1213, December.
    • Handle: RePEc:taf:jitecd:v:22:y:2013:i:8:p:1183-1213
    DOI: 10.1080/09638199.2011.651154
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2011.651154
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638199.2011.651154?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karam Shaar, 2018. "Mortgagor Vulnerability and Deposit Affordability in New Zealand before and after the Loan-to-Value Restrictions," Reserve Bank of New Zealand Analytical Notes series AN2018/06, Reserve Bank of New Zealand.
    2. Shaar, Karam, 2017. "International trade data quality index," Working Paper Series 20138, Victoria University of Wellington, School of Economics and Finance.
    3. Shaar, Karam, 2017. "Reconciling International Trade Data," MPRA Paper 81572, University Library of Munich, Germany.
    4. Shaar, Karam, 2017. "International trade data quality index," Working Paper Series 6128, Victoria University of Wellington, School of Economics and Finance.
    5. repec:vuw:vuwecf:16724 is not listed on IDEAS
    6. Shaar, Karam, 2019. "Essays on modern economic issues in international trade, exchange rates and housing," Working Paper Series 8039, Victoria University of Wellington, School of Economics and Finance.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:22:y:2013:i:8:p:1183-1213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.