The impacts of exchange rate volatility on vegetable trade flows
Karemera, David, Managi, Shunsuke, Reuben, Lucy, & Spann, Ora (2011) The impacts of exchange rate volatility on vegetable trade flows. Applied Economics, 43(13), pp. 1607-1616.
Trade flows of commodities are generally affected by the principles of comparative advantage in a free trade. However, trade flows might be enhanced or distorted not only by various government interventions, but also by exchange rate fluctuations among others. This study applies a commodity-specific gravity model to selected vegetable trade flows among Organization for Economic Co-operation and Development (OECD) countries to determine the effects of exchange rate uncertainty on the trade flows. Using the data from 1996 to 2002, the results show that, while the exchange rate uncertainty significantly reduces trade in the majority of commodity flows, there is evidence that both short- and long-term volatility have positive effect on trade flows of specific commodities. This study also tests the regional preferential trade agreements such as the North American Free Trade Agreement (NAFTA), the Asia-Pacific Economic Cooperation (APEC) and the EU, and their different effects on commodities.
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|Item Type:||Journal Article|
|Keywords:||exchange rate volatility , trade flows, vegetable trade, commodities|
|Subjects:||Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)|
|Divisions:||Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
|Deposited On:||24 Aug 2014 23:28|
|Last Modified:||26 Aug 2014 00:26|
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