Over the Hedge : Exchange Rate Volatility, Commodity Price Correlations, and the Structure of Trade

A long empirical literature has examined the idea that, in the absence of hedging mechanisms, currency risk should have an adverse effect on the export volumes of risk averse exporters. But there are no clear conclusions from this literature, and t...

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Bibliographic Details
Main Author:	Raddatz, Claudio
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ABSOLUTE VALUE ADVERSE EFFECT ANCHOR CURRENCY ANNUAL GROWTH AVERAGE EXCHANGE RATE BARRIER BILATERAL EXCHANGE RATE BILATERAL EXCHANGE RATES BILATERAL TRADE CAPITAL INTENSITY CENTRAL BANKS COMMODITIES COMMODITY COMMODITY EXPORTS COMMODITY PRICE COMMON CURRENCIES COMPARATIVE ADVANTAGE COUNTRY FIXED EFFECTS CURRENCY CURRENCY HEDGING CURRENCY RISK CURRENCY UNION CURRENCY UNIONS DATA AVAILABILITY DEBT DEGREE OF RISK DEPENDENT VARIABLE DEPRECIATIONS DERIVATIVE DERIVATIVE MARKETS DERIVATIVES MARKET DERIVATIVES MARKETS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT OF EXCHANGE DEVELOPMENT POLICY DOLLAR DEBT DOLLAR EXCHANGE RATE DOMESTIC PRICES ECONOMETRICS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC SIZE ECONOMIC SURVEYS ELASTICITY ELASTICITY OF SUBSTITUTION EMERGING CURRENCY BLOCS EQUATIONS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE ARRANGEMENTS EXCHANGE RATE DATA EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE MOVEMENTS EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE RISK EXCHANGE RATE RISKS EXCHANGE RATE UNCERTAINTY EXCHANGE RATE VOLATILITY EXCHANGE RATES EXPLANATORY VARIABLE EXPORT SHARE EXPORT SHARES EXPORT VOLUMES EXPORTER EXPORTERS EXPOSURE FINANCIAL DERIVATIVES FINANCIAL SECTOR FINANCIAL SUPPORT FIXED EXCHANGE RATES FLEXIBLE EXCHANGE RATES FOREIGN EXCHANGE FOREIGN EXCHANGE RATE FUTURE RESEARCH FUTURES GDP GDP PER CAPITA GLOBAL EXPORT GLOBAL EXPORTS GLOBAL TRADE GRAVITY MODELS GROWTH RATE GROWTH RATES HARD PEGS HEDGES HEDGING INSTRUMENTS HISTORY OF EXCHANGE RATE HOME COUNTRY HOMOGENEOUS GOODS HUMAN CAPITAL IMPORT IMPORT PRICE IMPORTS INCOME INCOME LEVELS INSTRUMENT INSTRUMENTAL VARIABLE INSTRUMENTAL VARIABLES INTERNATIONAL BANK INTERNATIONAL COMPETITIVENESS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MARKETS INTERNATIONAL MONETARY FUND INTERNATIONAL PRICE INTERNATIONAL PRICES INTERNATIONAL SETTLEMENTS INTERNATIONAL TRADE LEVY LIBERALIZATION LIQUIDITY LOCAL CURRENCY LONG RUN EQUILIBRIUM MACROECONOMIC VOLATILITY MACROECONOMICS MAJOR CURRENCIES MARKET DATA MARKET FORCES MONETARY FUND MULTILATERAL TRADE NOMINAL EXCHANGE RATE NOMINAL EXCHANGE RATES OPEN COUNTRIES OUTPUT OUTPUT PER CAPITA PEG PEGS POLITICAL ECONOMY PRICE INDEX PRICE INDEXES PRICE MOVEMENTS PRICE OF GOOD PRICE OF GOODS PRICE SERIES PRICE VOLATILITY PRIVATE CREDIT REAL COSTS REAL EXCHANGE RATE REAL EXCHANGE RATES REFERENCE CURRENCY RELATIVE PRICE RELATIVE PRICES RISK AVERSE STANDARD DEVIATION STANDARD DEVIATIONS STEADY STATE STRUCTURAL REFORMS SWAPS TEST OF EQUALITY TOTAL EXPORT TOTAL EXPORTS TRADE DATA TRADE IMPACT TRADE LIBERALIZATION TRADE OPENNESS TRADE PATTERN TRADE PATTERNS TRADE SHARE TRADE SHARES TRADING TRADING PARTNER TRADING PARTNERS TRANSPORTATION COST TRUST FUND TURNOVER UNCERTAINTY UNDERDEVELOPED COUNTRIES VALUE INDEXES VOLATILE ENVIRONMENTS VOLATILE EXCHANGE RATES VOLATILITIES VOLATILITY VOLUME OF TRADE WEIGHTS WORLD DEVELOPMENT INDICATORS WORLD PRICE WORLD TRADE
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110315085110 http://hdl.handle.net/10986/3357