The Effect of Exchange Rate Volatility upon Foreign Trade of Hungarian Agricultural Products

This paper takes a new empirical look at the long-standing question of the effect of exchange rate volatility on international trade flows of transition economies in Central Europe by studying the case of Hungarian agricultural exports to their export destination countries between 1999 and 2008. Based on a gravity model that controls for other factors likely to determine bilateral trade, the results show that nominal exchange rate volatility has had a significant positive effect on agricultural trade over this period. This positive effect of exchange rate volatility on agricultural exports suggests that agri-food entrepreneurs are not interested in speeding up the process of joining Hungary to the euro zone.


Issue Date:
2011-03
Publication Type:
Journal Article
DOI and Other Identifiers:
HU ISSN 1418 2106 (Other)
PURL Identifier:
http://purl.umn.edu/102403
Published in:
Studies in Agricultural Economics, Volume 113
Number 1
Page range:
85-96
Total Pages:
14




 Record created 2017-04-01, last modified 2017-08-22

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