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The impact of exchange rate volatility on U.S. poultry exports

Author

Listed:
  • Titus O. Awokuse

    (Department of Food and Resource Economics, University of Delaware, Newark, DE 19717)

  • Yan Yuan

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77840)

Abstract

Existing empirical evidence on the effect of exchange rate uncertainty on trade is generally conflicting and inconclusive. While some studies found a positive relationship between exchange rate volatility and trade, others argue for the opposite. Furthermore, the vast majority of past studies only focused on aggregate trade flow data. The lack of extensive literature on studies based on disaggregated and commodity-level data may partially explain the ambiguity in past empirical evidence. This paper re-examines the relationship between exchange rate volatility and U.S. poultry exports using a panel data for 49 importing nations over two subperiods: 1976-1985 and 1986-2000. The analysis uses a fixed-effects model specification and three alternative measures of exchange rate volatility. The empirical results suggest that the choice of volatility measure matters as there is a positive relationship between exchange rate uncertainty and poultry exports. These findings are consistent with those from several previous studies. [JEL classification: F310, Q170]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 233-245, 2006.

Suggested Citation

  • Titus O. Awokuse & Yan Yuan, 2006. "The impact of exchange rate volatility on U.S. poultry exports," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 233-245.
    • Handle: RePEc:wly:agribz:v:22:y:2006:i:2:p:233-245
    DOI: 10.1002/agr.20082
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    References listed on IDEAS

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    Cited by:

    1. Shane, Mathew & Roe, Terry L. & Somwaru, Agapi, 2008. "Exchange Rates, Foreign Income, and U.S. Agricultural Exports," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-16.
    2. Durmaz, Nazif & Thompson, Henry, 2013. "US Cotton Exports and Bilateral Exchange Rates," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 14(1), pages 1-11.
    3. Durmaz, Nazif & Thompson, Henry, 2010. "Textile Producer Cotton Imports and the Exchange Rate," MPRA Paper 21831, University Library of Munich, Germany.
    4. Wesley, J.D. & Shen, Xuan & Li, Sheng & Wilson, Norbert L.W., 2012. "Agricultural Trade Bias in Exchange Rate Volatility Effect Estimation: An Application of Meta-Regression Analysis," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124870, Agricultural and Applied Economics Association.
    5. Dengjun Zhang, 2015. "The trade effect of price risk: a system-wide approach," Empirical Economics, Springer, vol. 48(3), pages 1149-1167, May.
    6. Agiomirgianakis, George & Serenis, Dimitrios & Tsounis, Nicholas, 2017. "Effective timing of tourism policy: The case of Singapore," Economic Modelling, Elsevier, vol. 60(C), pages 29-38.
    7. Halit YANIKKAYA & Huseyin KAYA & Osman Murat KOCTURK, 2013. "The effect of real exchange rates and their volatilities on the selected agricultural commodity exports: A case study on Turkey, 1971-2010," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(5), pages 235-246.
    8. Johane Motsatsi, 2020. "How Non-Diamond Exports Respond to Exchange Rate Volatility in Botswana," Working Papers 77, Botswana Institute for Development Policy Analysis.
    9. Mekbib Gebretsadik Haile & Geoff Pugh, 2013. "Does exchange rate volatility discourage international trade? A meta-regression analysis," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(3), pages 321-350, April.
    10. Dimitrios Serenis & Paul Serenis, 2010. "Exchange Rate Volatility, the E.U. and Sectoral Exports: New Empirical Evidence from the Chemical Sector (1973-2005)," Research in World Economy, Research in World Economy, Sciedu Press, vol. 1(1), pages 47-55, November.
    11. Florian Verheyen, 2014. "The stability of German export demand equations – have German exports suffered from the strength of the euro?," International Economics and Economic Policy, Springer, vol. 11(4), pages 529-548, December.
    12. Alegwu, Friday O. & Aye, Goodness C. & Asogwa, Benjamin C., 2017. "Asymmetric Effect of Real Exchange Rate Volatility on Agricultural Products Export: A Case Study," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(3), pages 261-279.
    13. Páll, Zsombor, 2015. "Three essays on the Russian wheat export," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 80, number 80.
    14. Sirikul Tulasombat & Somchai Ratanakomut, 2015. "The Effect of Exchange Rates on Agricultural Goods for Export: A Case of Thailand," Information Management and Business Review, AMH International, vol. 7(1), pages 1-11.
    15. Mohsen Bahmani‐Oskooee & Hanafiah Harvey, 2022. "The U.S.‐Canadian trade and exchange rate uncertainty: Asymmetric evidence from commodity trade," The World Economy, Wiley Blackwell, vol. 45(3), pages 841-866, March.

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