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US Export Earnings from and Import Payments to German Industries: Role of the Real Exchange Rate and Asymmetry

Author

Listed:
  • M Bahmani-Oskooee
  • R Nouira
  • S Saafi

Abstract

We add to the new literature findings on the asymmetric effects of exchange rate changes on a country’s export and import values by considering nearly 20 industries that trade between the US and Germany. These industries contribute more than 90 per cent of the trade between the two countries. We find short-run asymmetric effects of exchange rate changes on export and import values in nearly all industries. However, short-run asymmetric effects translate into long- run asymmetric effects in four US exporting industries with a total trade share of 21.62 per cent and six US importing industries with a total trade share of 34.53 per cent. These findings were absent when we first estimated a traditional symmetric or linear model. The approach helped us to identify industries whose exports earning (imports value) could benefit from dollar depreciation (appreciation) and vice versa.

Suggested Citation

  • M Bahmani-Oskooee & R Nouira & S Saafi, 2021. "US Export Earnings from and Import Payments to German Industries: Role of the Real Exchange Rate and Asymmetry," Economic Issues Journal Articles, Economic Issues, vol. 26(1), pages 57-73, March.
    • Handle: RePEc:eis:articl:121bahmani
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    US-German Trade; Export Earnings; Import Values; 67 Industries; Asymmetry analysis;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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