Economics at your fingertips  

Orcutt's hypothesis revisited: evidence from commodity prices

Mohsen Bahmani-Oskooee () and Amr Hosny ()

International Journal of Public Policy, 2015, vol. 11, issue 4/5/6, 152-168

Abstract: In 1950, Orcutt conjectured that trade flows respond to changes in the exchange rate faster than to changes in relative prices. Previous research that tested Orcutt's hypothesis used aggregate trade flows of one country with the rest of the world and did not find much support for the hypothesis. Due to lack of commodity prices, no study has attempted to test Orcutt's conjecture at commodity level. Now that we have come across such price data for 36 industries that trade between the USA and Egypt, we test the Orcutt's hypothesis using industry level data and provide support for the hypothesis in 50% of the cases.

Keywords: Orcutt's hypothesis; Egypt-USA trade; industry data; Egypt; USA; United States; commodity prices; trade flows; exchange rate. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

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:

Access Statistics for this article

More articles in International Journal of Public Policy from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Carmel O'Grady (). This e-mail address is bad, please contact .

Page updated 2019-06-05
Handle: RePEc:ids:ijpubp:v:11:y:2015:i:4/5/6:p:152-168