THE EFFECT OF EXCHANGE RATE VOLATILITY ON WHEAT TRADE WORLDWIDE

A modified gravity-type model was employed to evaluate the effect of exchange rate volatility on wheat exports worldwide. Special attention was given to the econometric properties of the gravity model within a panel framework. Short and long-term measures of exchange rate volatility were constructed and compared. Both measures of exchange rate volatility exhibited negative effects on world wheat trade, with even greater effects in the long-term measure. This result implies that exchange rate volatility is an important factor in explaining the trade pattern of wheat worldwide.

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Year of publication:	2002
Authors:	Sun, Changyou ; Kim, Mina ; Koo, Won W. ; Cho, Guedae ; Jin, Hyun Joung
Institutions:	Department of Agribusiness and Applied Economics, North Dakota State University
Subject:	wheat \| export \| exchange rate \| volatility \| gravity model \| and panel data. \| International Relations/Trade

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Extent:	application/pdf
Series:	Agribusiness & Applied Economics Report.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Department of Agribusiness and Applied Economics>Agribusiness & Applied Economics Report Number 23579
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005494049