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 -