EXCHANGE-RATE VOLATILITY AND INDUSTRY TRADE BETWEEN THE U.S. AND KOREA
Mohsen Bahmani-Oskooee (),
Hanafiah Harvey and
Scott Hegerty ()
Additional contact information
Hanafiah Harvey: Penn State University
Journal of Economic Development, 2012, vol. 37, issue 1, 1-27
Even though numerous empirical studies have investigated the effects of the post-Bretton Woods increase in exchange-rate volatility, they have not reached a consensus whether this uncertainty universally reduces trade flows. As a result, recent studies have employed industry-level data to further isolate the causes of these ambiguous results. In this study, we investigate U.S. trade with South Korea, both at the bilateral level and for 96 U.S. export and 29 U.S. import industries. We find that exchange rate volatility has significant short-run effects on most industries¡¯ exports and imports. In the long run, however, only 16 exporting industries and seven importing industries are affected by volatility (some positively and some negatively). Most affected industries are small, as measured by their trade share.
Keywords: Exchange Rate Volatility; Industry Data; Korea; the United States (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:37:y:2012:i:1:p:1-27
Access Statistics for this article
Journal of Economic Development is currently edited by Sung Y. Park
More articles in Journal of Economic Development from Chung-Ang Unviersity, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sung Y. Park ().