01710cas a2200241 a 4500 AALejournalIMF000680 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852950 1018-5941 BD-DhAAL BD-DhAAL Dell'Ariccia, Giovanni. Exchange Rate Fluctuations and Trade Flows : Evidence From the European Union / Giovanni Dell'Ariccia. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the effects of exchange rate volatility on bilateral trade flows. Through use of a gravity model and panel data from western Europe, exchange rate uncertainty is found to have a negative effect on international trade. The results seem to be robust with respect to the particular measures representing exchange rate uncertainty. Particular attention is reserved for problems of simultaneous causality. The negative correlation between trade and bilateral volatility remains significant after controlling for the simultaneity bias. However, a Hausman test rejects the hypothesis of the absence of simultaneous causality. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/107 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/107/001.1998.issue-107-en.xml IMF e-Library