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The effects of exchange-rate volatility on industry trade between the US and Egypt

Author

Listed:
  • Mohsen Bahmani-Oskooee

    ()

  • Scott Hegerty
  • Amr Hosny

Abstract

Recent instability in Egypt has brought attention to the role of risk in this important economy. At the same time, there is room in the ever-expanding literature on the link between exchange-rate volatility and trade flows, particularly for individual commodities, in Egypt. This study examines 36 separate export and import industries vis-à-vis the United States, from 1994 to 2007. An application of cointegration analysis and error-correction modeling finds evidence of long-run relationships for many import and export industries, with exports increasing due to higher risk in a large proportion of cases. Although most industries, particularly in imports, are nevertheless unaffected, our results differ from other studies in the literature. An analysis of our industry-level results shows that chemical imports, and exports of industries with large trade shares, are more likely to increase than are other products or imports. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Mohsen Bahmani-Oskooee & Scott Hegerty & Amr Hosny, 2015. "The effects of exchange-rate volatility on industry trade between the US and Egypt," Economic Change and Restructuring, Springer, vol. 48(2), pages 93-117, May.
  • Handle: RePEc:kap:ecopln:v:48:y:2015:i:2:p:93-117
    DOI: 10.1007/s10644-014-9153-3
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    References listed on IDEAS

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    Cited by:

    1. Mohsen Bahmani-Oskooee & Nazif Durmaz, 2016. "Exchange rate volatility and Turkish commodity trade with the rest of the world," Economic Change and Restructuring, Springer, vol. 49(1), pages 1-21, February.
    2. repec:kap:ecopln:v:50:y:2017:i:2:d:10.1007_s10644-016-9187-9 is not listed on IDEAS
    3. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9849-7 is not listed on IDEAS

    More about this item

    Keywords

    Exchange rate volatility; Industry data; Egypt; United States; Bounds testing; F31;

    JEL classification:

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

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