The effect of exchange rate volatility on U.S. bilateral trade with Africa: A symmetric and asymmetric analysis

Mohsen Bahmani-Oskooee and Augustine C. Arize

Economic Systems, 2022, vol. 46, issue 1

Abstract: The impact of exchange rate volatility on U.S. trade with the world or on U.S. trade with major partners has been assessed by many researchers, but none have considered the case of U.S. trade with African nations. We fill this gap by assessing the symmetric and asymmetric impact of the real bilateral exchange rate volatility between the U.S. dollar and each African partner’s currency on the U.S. trade flows with each of the 20 partners from Africa. We found asymmetric short-run effects of exchange rate volatility on almost all U.S. exports to and imports from each of the 20 countries. In addition, significant long-run asymmetric effects were discovered in the case of U.S. exports to 15 countries and U.S. imports from 12 countries. Our findings are partner-specific.

Keywords: Exchange rate volatility; U.S. trade flows; 20 African partners; Asymmetry effects (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:46:y:2022:i:1:s0939362521000273

DOI: 10.1016/j.ecosys.2021.100879

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