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An Examination of the Impacts of Exchange Rate Volatility on Sectoral Trade in the Mercosur

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  • Larson, Donald W.
  • Bittencourt, Maurício Vaz Lobo
  • Thompson, Stanley R.

Abstract

This study captures the lack of macroeconomic policy coordination among Mercosur countries, through the impact of real bilateral exchange rate volatility on trade. A sectoral gravity model is estimated under two different measures of exchange rate volatility. Results show that the reduction in exchange rate volatility can increase bilateral trade.

Suggested Citation

  • Larson, Donald W. & Bittencourt, Maurício Vaz Lobo & Thompson, Stanley R., 2005. "An Examination of the Impacts of Exchange Rate Volatility on Sectoral Trade in the Mercosur," 2005 Annual meeting, July 24-27, Providence, RI 19572, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19572
    DOI: 10.22004/ag.econ.19572
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    Cited by:

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    2. Imam Mukhlis, 2010. "Impact of volatility exchange rates on Indonesian electronic imports from intra and extra ASEAN," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 2(1), pages 61-78, April.

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