An Examination of the Impacts of Exchange Rate Volatility on Sectoral Trade in the Mercosur

Donald W. Larson, Mauricio Vaz Lobo Bittencourt () and Stanley R. Thompson

No 19572, 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This study captures the lack of macroeconomic policy coordination among Mercosur countries, through the impact of real bilateral exchange rate volatility on trade. A sectoral gravity model is estimated under two different measures of exchange rate volatility. Results show that the reduction in exchange rate volatility can increase bilateral trade.

Keywords: International Relations/Trade (search for similar items in EconPapers)
Date: 2005
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Persistent link: http://EconPapers.repec.org/RePEc:ags:aaea05:19572

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