EconPapers    
Economics at your fingertips  
 

Exchange Rate Uncertainty and Trade Flows Between the United States and China

Marilyne Huchet-Bourdon () and Mohsen Bahmani-Oskooee ()

Chinese Economy, 2013, vol. 46, issue 2, 29-53

Abstract: This article assesses the impact of the RMB-dollar exchange rate and volatility on U.S. agricultural exports to and imports from China. Two measures of volatility are employed: one based on the moving standard deviation of the real RMB-dollar rate, the other a GARCH-based measure which yields more significant results. We find that exchange rate volatility has a significantly positive long-run effect only on export earnings of the nonagricultural sector. On the other hand, depreciation of the dollar has an expected long-run effect on the import value of the nonagricultural sector and on export earnings of the agricultural sector. No matter which model we consider, the level of economic activity in both countries seems to be the major long-run determinant of trade flows in both directions.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=V4534U6361U12343 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Exchange rate uncertainty and trade flows between the unites states and china (2013)
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:mes:chinec:v:46:y:2013:i:2:p:29-53

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MCES20

Access Statistics for this article

More articles in Chinese Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2019-06-20
Handle: RePEc:mes:chinec:v:46:y:2013:i:2:p:29-53