TY  - CPAPER 
AB  - 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.
AU  - Steinbach, Sandro
DA  - 2015
DA  - 2015
DO  - 10.22004/ag.econ.209225
DO  - doi
ID  - 209225
KW  - Agricultural and Food Policy
KW  - International Relations/Trade
L1  - https://ageconsearch.umn.edu/record/209225/files/P1-198-Steinbach-Exchange_Rate_Volatility_and_Grain_Trade.pdf
L2  - https://ageconsearch.umn.edu/record/209225/files/P1-198-Steinbach-Exchange_Rate_Volatility_and_Grain_Trade.pdf
L4  - https://ageconsearch.umn.edu/record/209225/files/P1-198-Steinbach-Exchange_Rate_Volatility_and_Grain_Trade.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/209225/files/P1-198-Steinbach-Exchange_Rate_Volatility_and_Grain_Trade.pdf
N2  - 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.
PY  - 2015
PY  - 2015
T1  - Exchange Rate Volatility and Grain Trade: A Gravity Model Analysis at the Sectoral Level
TI  - Exchange Rate Volatility and Grain Trade: A Gravity Model Analysis at the Sectoral Level
UR  - https://ageconsearch.umn.edu/record/209225/files/P1-198-Steinbach-Exchange_Rate_Volatility_and_Grain_Trade.pdf
Y1  - 2015
T2  - Poster
T2  - P1
ER  -