Bilateral exports from euro zone countries to the US — Does exchange rate variability play a role?

The financial crisis and the debt crisis in Europe have led to pronounced swings in the $/€ exchange rate. The influence of this exchange rate uncertainty on exports is neither theoretically nor empirically unambiguous. This investigation will try to determine what effect such exchange rate volatility has on exports from eleven euro zone countries to the US. Our results suggest that if exchange rate volatility does exert a significant influence, it is typically negative. Furthermore, the exports most often negatively affected seem to be those of SITC categories 6 and 7.