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Impact Of Exchange Rate Uncertainty On Commodity Trade Between The Us And Australia

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  • MOHSEN BAHMANI-OSKOOEE
  • YONGQING WANG

Abstract

Exchange rate volatility is said to have negative or positive effect on trade flows. Previous studies that considered the impact of exchange rate uncertainty on the trade flows of Australia employed trade data either between Australia and rest of the world or between Australia and her few major trading partners. They were unable to discover any significant impact. In this paper when we disaggregate trade data by commodity between Australia and one of her major trading partners, the US, we find exchange rate volatility to have short-run effects on trade flows of most industries. However, the short-run effects last into long run, only in limited cases, though more in export commodities than import ones. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd/University of Adelaide and Flinders University.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Yongqing Wang, 2008. "Impact Of Exchange Rate Uncertainty On Commodity Trade Between The Us And Australia ," Australian Economic Papers, Wiley Blackwell, vol. 47(3), pages 235-258, September.
  • Handle: RePEc:bla:ausecp:v:47:y:2008:i:3:p:235-258
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    References listed on IDEAS

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    Cited by:

    1. Odili Okwuchukwu, 2015. "Exchange Rate Volatility, Stock Market Performance and Foreign Direct Investment in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(2), pages 172-184, April.
    2. repec:fis:journl:170302 is not listed on IDEAS
    3. Mohsen Bahmani-Oskooee & Hanafiah Harvey, 2015. "Impact of Exchange Rate Volatility and Commodity Trade between U.S. and Singapore," Review of Economics & Finance, Better Advances Press, Canada, vol. 5, pages 22-40, February.

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