On the trade impact of nominal exchange rate volatility

Journal of Development Economics

Volumn 82, Issue 2, 2007, Pages 485-508

  Tenreyro, Silvana ^a  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

Author keywords

Exchange rate volatility; Gravity equation; Heteroskedasticity; Instrumental variable; Poisson regression; Trade

Indexed keywords

ECONOMIC IMPACT; EXCHANGE RATE; REGRESSION ANALYSIS; TRADE FLOW;

EID: 33751304474     PISSN: 03043878     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jdeveco.2006.03.007     Document Type: Article

References (41)

1. Abrahms, R., 1980. Actual and Potential Trade Flows with Flexible Exchange Rates. Federal Reserve Bank of Kansas City Working Paper No. 80-01.
2. Alesina A., and Barro R. Currency unions. Quarterly Journal of Economics (2002) 409-436 (May)
3. Alesina A., Barro R., and Tenreyro S. Optimal currency areas. In: Gertler M., and Rogoff K. (Eds). NBER Macroeconomics Annual (2002)
4. Anderson J. A theoretical foundation for the gravity equation. American Economic Review 69 (1979) 106-116
5. Anderson J., and van Wincoop E. Gravity with gravitas: a solution to the border puzzle. American Economic Review 93 (2003) 170-192 (March)
6. Anderson J., and van Wincoop E. Trade costs. Journal of Economic Literature (2004) (September)
7. Bacchetta P., and van Wincoop E. Does exchange rate stability increase trade and welfare?. American Economic Review 90 5 (2001) 1093-1109
8. Barro R., and Tenreyro S. Closed and open economy models of business cycles with marked-up and sticky prices. Economic Journal 116 511 (2006) 434-456 (April)
9. Bergstrand J. The gravity equation in international trade: some microeconomic foundations and empirical evidence. Review of Economics and Statistics 69 (1985) 474-481
10. Broda, C., Romalis, J., 2003. Identifying the relationship between Exchange Rate Volatility and Trade. Mimeo, Federal Reserve Bank of New York, November 2003.
11. Central Intelligence Agency, World Factbook, 2002. http://www.cia.gov/cia/publications/factbook/.
12. Côté, A., 1994. Exchange rate volatility and trade: a survey. Bank of Canada Working Paper 94-95.
13. Davis D. Intra-industry trade: a Hecksher-Ohlin-Ricardo approach. Journal of International Economics 39 (1995) 201-226
14. Deardoff A. Determinants of bilateral trade: does gravity work in a neoclassical world?. In: Frankel J. (Ed). The Regionalization of the World Economy (1998), University of Chicago Press, Chicago, IL
15. De Grauwe P., and Skudelny F. The impact of EMU on trade flows. Weltwirtschaftliches Archiv 136 (2000) 381-400
16. Eaton, J., Kortum, S., 2001. Technology, Geography and Trade. NBER Working Paper No. 6253.
17. Eichengreen, B., Irwin, D., 1996. The Role of History in Bilateral Trade Flows. NBER Working Paper No. 5565.
18. Engel C., and Rose A. Currency unions and international integration. Journal of Money, Credit and Banking 136 (2000) 381-400
19. Feenstra, R.C., Lipsey, R.E., Bowen, H.P., 1997. World Trade Flows, 1970-1992, with Production and Tariff Data. NBER Working Paper No. 5910.
20. Feenstra, R., Markusen, J., Rose, A., 1999. Using the Gravity Equation to Differentiate Among Alternative Theories of Trade. http://www.econ.ucdavis.edu/~feenstra.
21. Frankel J. Regional Trading Blocs in the World Economic System (1997), Institute for International Economics, Washington, DC
22. Frankel J., and Rose A. An estimate of the effect of currency unions on trade and growth. Quarterly Journal of Economics (2002)
23. Frankel, J., Wei, S., 1993. Trade Blocs and Currency Blocs. NBER Working Paper No. 4335.
24. Gray, A., 2001. http://argray.fateback.com/dist/formula.html.
25. Hallak J.C. Product quality and the direction of trade. Journal of International Economics 68 1 (2006) 238-265
26. Haveman, J., Hummels, D., 2001. Alternative Hypotheses and the Volume of Trade: The Gravity Equation and the Extent of Specialization. Mimeo, Purdue University.
27. Helpman E., and Krugman P. Market Structure and Foreign Trade (1985), MIT Press, Cambridge, MA
28. Helpman, E., Melitz, M., Rubinstein, Y., 2004. Trading Patterns and Trading Volumes. Havard mimeo.
29. Hooper P., and Kohlhagen S. The effect of exchange rate uncertainty on the prices and volume of international trade. Journal of International Economics 8 (1978) 483-511
30. International Financial Statistics, International Monetary Fund, Haver Analytics, 2003.
31. Reinhart C., and Rogoff K. The modern history of exchange rate arrangements: a reinterpretation. Quarterly Journal of Economics CXIX 1 (2004) 1-48 (February)
32. Rose A. One money one market: estimating the effect of common currencies on trade. Economic Policy 15 (2000) 7-46
33. Rose A., and van Wincoop E. National money as a barrier to international trade: the real case for currency union. American Economic Review (2000) 386-390
34. Santos Silva, J., Tenreyro, S., in press. The log of gravity. Review of Economics and Statistics.
35. Sekkat, K., 1997. Exchange Rate Variability and EU Trade. Final Report to the Commission of the EU, Brussels.
36. Staiger D., and Stock J. Instrumental variables regression with weak instruments. Econometrica 65 (1997) 557-586
37. Tenreyro, S., Barro, R., 2002. Economic Effects of Currency Unions. FRB Boston Series, Working Paper No. 02-4 and NBER Working Paper No. 9435.
38. Thursby J., and Thursby M. Bilateral trade flows, the Linder hypothesis, and exchange risk. The Review of Economics and Statistics 69 (1987) 488-495
39. Varian H. Microeconomic Analysis. 3rd ed. (1992), W.W. Norton & Company, New York, NY
40. Windmeijer F., and Santos Silva J. Endogeneity in count data models: an application to demand for health care. Journal of Applied Econometrics 12 (1997) 281-294
41. The World Bank. World Development Indicators CD-rom, 2002.