Third-Country Exchange Rate Volatility and Pakistan-U.S. Trade at Commodity Level |
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| Authors: | Mohsen Bahmani-Oskooee Misbah Nosheen Javed Iqbal |
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| Affiliation: | 1. The Center for Research on International Economics, Department of Economics, University of Wisconsin-Milwaukee, Milwaukee, Wisconsin, USA;2. Department of Economics, Hazara University, Mansehra, Pakistan;3. School of Economics, Quaid e Azam University, Islamabad, Pakistan |
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| Abstract: | We add to the literature on the “Third-Country” effect by assessing the impact of rupee-dollar volatility on 116 U.S. industries that export to Pakistan and 53 U.S. industries that import from Pakistan. As two measures of “Third-Country” effects, we include volatility measures of rupee-yuan and dollar-yuan rates due to the increased role of China in the global economy. We find evidence of “Third-Country” effects in more than half of the industries. Among affected industries are many of the large U.S. exporting industries, but not large U.S. importing industries. |
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| Keywords: | China commodity trade exchange rate volatility Pakistan the U.S. |
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