Exchange-rate variability and U.S.-French trade flows: evidence from industry data
AbstractRecent studies have greatly expanded the literature on the effects of exchange-rate volatility on industry-level bilateral trade flows. In this study, we examine the case of the United States and France, applying cointegration analysis to a set of 146 U.S. export and 115 U.S. import industries. We find that the majority of industries show little or no relationship between risk and trade volumes, but that small industries—particularly for exports—show more sensitivity than do large ones. A disproportionate share of industries respond positively to increased volatility, particularly among U.S. importers, suggesting the presence of “risk loving” behavior. Copyright Springer Science+Business Media New York 2013
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Bibliographic InfoArticle provided by Springer in its journal Empirica.
Volume (Year): 40 (2013)
Issue (Month): 4 (November)
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Web page: http://www.springerlink.com/link.asp?id=100261
Exchange rate volatility; Industry data; France; United States; Bounds testing; F31;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
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