@article{Steinbach:209225, recid = {209225}, author = {Steinbach, Sandro}, title = {Exchange Rate Volatility and Grain Trade: A Gravity Model Analysis at the Sectoral Level}, address = {2015}, number = {872-2016-60891}, series = {Poster}, pages = {3}, year = {2015}, abstract = {There has been a controversy among economists on whether exchange rate volatility has a negative effect on trade. We will investigate this issue by making use of a sectoral gravity model of global grain trade. Our identification strategy carefully addresses endogeneity issues present in earlier studies. Using a long panel, we are able to show that exchange rate volatility has a negative impact on bilateral export trade flows. The magnitude of this effect can vary widely, depending on the market under study, which is an indicator for substantial heterogeneity among sectors.}, url = {http://ageconsearch.umn.edu/record/209225}, doi = {https://doi.org/10.22004/ag.econ.209225}, }