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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
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    References listed on IDEAS

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    Cited by:

    1. Longjiang Chen, 2011. "The effect of China's RMB exchange rate movement on its agricultural export: A case study of export to Japan," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(1), pages 26-41, January.

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    Keywords

    International Relations/Trade;

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