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.

View at publisher

Abstract

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.

Impact and interest:

7 citations in Scopus
Search Google Scholar™
6 citations in Web of Science®

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 75458
Item Type: Journal Article
Refereed: Yes
Keywords: exchange rate volatility , trade flows, vegetable trade, commodities
DOI: 10.1080/00036840802600137
ISSN: 1466-4283
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

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page