| This study documents the effect of exchange rate volatility and the real exchange rate on bilateral agricultural exports, imports and total trade (exports + imports) flows between the United States and OECD countries. The effect of exchange rate volatility is estimated both separately from and in combination with the real exchange rate. In addition, implementation of Free Trade Agreements (FTAs) and use of the Euro as a national currency (Euro) are included as dummy variables and their effects on trade flows are also determined. A panel data set, which contains 28 cross-sections and 1148 observations, is used for bilateral trade flows between the United States and OECD countries from 1970 to 2010. With an empirical model based on a gravity equation, the... |
