EconPapers    
Economics at your fingertips  
 

Exchange Rate Volatility and U.S. Auto-Industry Exports: A Panel Cointegration Approach

Veysel Avsar () and Kemal Turkcan ()

International Journal of Economics and Financial Issues, 2013, vol. 3, issue 4, 772 - 787

Abstract: Intermediate goods are often neglected in the empirical studies of the impact of exchange rate volatility on bilateral trade flows. Using import unit values of 58 motor vehicle products and 193 auto-parts, which are classified by the 10-digit level of Harmonized Tariff Schedule (HTS), this study examines the impact of exchange rate volatility on the U.S. automotive industry exports and imports (both motor-vehicle products and auto-parts) from 37 major trading partners for the period of 1996.01 to 2008.4 by using panel data cointegration techniques. We obtain substantial heterogeneity in terms of the impact of exchange rate volatility for final and intermediate goods. We also find support for the positive hypothesis that exchange rate volatility may lead to greater levels of trade.

Keywords: Exchange rate volatility; the U.S. auto-parts industry; Fragmentation; Panel econometrics (search for similar items in EconPapers)
JEL-codes: C33 F14 F31 F40 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/540/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/540/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2013-04-1

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

 
Page updated 2022-05-13
Handle: RePEc:eco:journ1:2013-04-1