The impact of exchange rate volatility on U.S. poultry exports

✍ Scribed by Titus O. Awokuse; Yan Yuan

• Publisher: John Wiley and Sons
• Year: 2006
• Tongue: English
• Weight: 233 KB
• Volume: 22
• Category: Article
• ISSN: 0742-4477
• DOI: 10.1002/agr.20082

✦ Synopsis

Existing empirical evidence on the effect of exchange rate uncertainty on trade is generally conflicting and inconclusive+ While some studies found a positive relationship between exchange rate volatility and trade, others argue for the opposite+ Furthermore, the vast majority of past studies only focused on aggregate trade flow data+ The lack of extensive literature on studies based on disaggregated and commodity-level data may partially explain the ambiguity in past empirical evi-dence+ This paper re-examines the relationship between exchange rate volatility and U+S+ poultry exports using a panel data for 49 importing nations over two subperiods : 1976-1985 and 1986-2000+ The analysis uses a fixed-effects model specification and three alternative measures of exchange rate volatility+ The empirical results suggest that the choice of volatility measure matters as there is a positive relationship between exchange rate uncertainty and poultry exports+ These findings are consistent with those from several previous studies+ @JEL classification: F310, Q170#+ © 2006 Wiley Periodicals, Inc+ Financial support for this research was provided by the University of Delaware General University Research fund+ The authors would like to thank two anonymous reviewers for their helpful comments which substantially improved the paper+ Any remaining errors or omissions are the sole responsibility of the authors+