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EXCHANGE RATE SENSITIVITY OF AUSTRALIA'S TRADE FLOWS: EVIDENCE FROM INDUSTRY DATA*
Author(s) -
BAHMANIOSKOOEE MOHSEN,
WANG YONGQING
Publication year - 2009
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2008.02084.x
Subject(s) - economics , cointegration , liberian dollar , commodity , value (mathematics) , exchange rate , econometrics , us dollar , sensitivity (control systems) , error correction model , macroeconomics , international economics , monetary economics , finance , engineering , statistics , mathematics , electronic engineering
In this paper we disaggregate the trade data between Australia and the USA by commodity and estimate import and export demand models for 108 commodities for which annual data over the 1962–2005 period were available. The results from the bounds testing approach to cointegration and error‐correction modelling indicate that in the long run 41 export industries and 70 import industries are sensitive to the real value of the Australian dollar.