Exchange-rate variability and U.S.-French trade flows: Evidence from industry data

Mohsen Bahmani-Oskooee, Hanafiah Harvey, Scott W. Hegerty

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

Recent studies have greatly expanded the literature on the effects of exchange-rate volatility on industry-level bilateral trade flows. In this study, we examine the case of the United States and France, applying cointegration analysis to a set of 146 U.S. export and 115 U.S. import industries. We find that the majority of industries show little or no relationship between risk and trade volumes, but that small industries-particularly for exports-show more sensitivity than do large ones. A disproportionate share of industries respond positively to increased volatility, particularly among U.S. importers, suggesting the presence of "risk loving" behavior.

Original languageEnglish (US)
Pages (from-to)685-719
Number of pages35
JournalEmpirica
Volume40
Issue number4
DOIs
StatePublished - Nov 1 2013

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development

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