To What Extent Do Exchange Rates and their Volatility Affect Trade?

OECD Food, 
Agriculture and Fisheries Working Papers
, No. 42. doi: 10.1787/5kgj0d3vzcth-en 
Obstfeld, M.and Rogoff, Kenneth S. (1998), Risk and exchange rates, 
NBE,R
working paper 6694. 
OECD (2006), China’s trade and growth: impact on selected OECD countries, 
OECD Trade 
Policy Working Paper
, n°44. 
OECD (2009a), Managing risk in Agriculture: a holistic approach, 168 pages. 
OECD (2009b), 2009 Economic Review– China, Economics Department. 
OECD (2011), To what extent do exchange rates and their volatility affect trade? The case of two 
small open economies, Chile and New Zealand. forthcoming. 
Perée, E. and Steinherr, A. (1989) Exchange rate uncertainty and foreign trade, 
European 
Economic Review
, 33, 1241–64. 
Pesaran Hashem M. and Pesaran B. (1997), 
Working with Microfit 4.0: Interactive Econometric 
Analysis
, Oxford University Press.
Pesaran Hashem M., Shin Y., Smith R.J. (2001) Bounds Testing approaches to the analysis of 
level relationships. 
Journal of Applied Econometrics
, 16, p. 289-326. 
Qian, Y. and Varangis, P. (1994) Does exchange rate volatility hinder export growth, 
Empirical 
Economics
, 19, 371–96. 
Rose, A. K. and Stanley, T. D. (2005) A meta-analysis of the effect of common currencies on 
international trade, 
Journal of Economic Surveys
, 19, pp. 347–66. 
Rose, Andrew K. and Yellen, Janet L. (1989), Is there a J-curve?, 
Journal of Monetary Economics,
24, p.53-68. 
Schuh G.E. (1974), The exchange rate and US agriculture, American Journal of Agricultural 
Economics, 56, p. 1-13. 
Schuh G.E. (1976), The new macroeconomics of agriculture, American journal of agricultural 
Economics, 58, p. 802-11. 
Tenreyro, S. (2004), On the trade impact of nominal exchange rate volatility, 
Federal Reserve 
Bank of Boston
, Working paper 03-2. 
Thursby, J. G. and Thursby, M. C. (1987), Bilateral trade flows, the linder hypothesis, and 
exchange risk, 
Review of Economics and Statistics
, 69, 488–95. 
Weber, Sebastian and Wyplosz, Charles, Exchange Rates During the Crisis. World Bank Policy 
Research Working Paper no. 5059, September 1, 2009. 
WTO, Agreement on Agriculture in 
The Uruguay Round Agreement
, Part XIII: Article 21, Annex 
A: Product coverage. 

---

 TO WHAT EXTENT DO EXCHANGE RATES AND THEIR VOLATILITY AFFECT TRADE –