Journal of Forest Economics > Vol 11 > Issue 4

Short- and long-run exchange rate effects on forest product trade: Evidence from panel data

Torjus F. Bolkesjø, torjbo@umb.no , Joseph Buongiorno
 
Suggested Citation
Torjus F. Bolkesjø and Joseph Buongiorno (2006), "Short- and long-run exchange rate effects on forest product trade: Evidence from panel data", Journal of Forest Economics: Vol. 11: No. 4, pp 205-221. http://dx.doi.org/10.1016/j.jfe.2005.09.002

Publication Date: 12 Jan 2006
© 0 2006 Torjus F. Bolkesjø, Joseph Buongiorno
 
Subjects
 
Keywords
JEL Codes:C230F190L730
EconometricsInternational tradeElasticityCausality.
 

Share

Download article
In this article:
Introduction 
Materials and methods 
Results 
Summary and discussion 

Abstract

Impacts of exchange rates on international forest products trade are widely debated, but the empirical evidence regarding this issue is still inconclusive. Here, we report findings of the impacts of the exchange rates on the main forest product imports and exports of the US, from January 1989 to November 2004. Export data consisted of monthly series of the main products exported by the US to different countries. For imports we used monthly series of the principal products imported by the US from Canada, the major source of imports. The strongest evidence was obtained by pooling the data across countries and products. In the short run, exports were very elastic with respect to the exchange rate (−2.6), while imports were moderately elastic (1.2). In the long run, the elasticity decreased but remained significant (0.5 for both exports and imports). Appreciation of the US dollar tended to matter more than depreciation, but the hypothesis that the effect of exchange rate was symmetric could not be rejected.

DOI:10.1016/j.jfe.2005.09.002