All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Raphaël Chiappini and Yves Jégourel
''Explaining the role of commodity traders: A theoretical approach''
( 2019, Vol. 39 No.3 )
Empirical models of international commodity trade ows tend to show that exchange rate volatility has either no or negative impact on export volumes. This analysis has a number of limitations. In particular, it underestimates the role of physical traders and, consequently, the importance of future markets. In this context, this article aims to provide the theoretical underpinnings to demonstrate that these traders play a very particular role and that they have an influence on the reality of export flows due to their use of future contracts. Using a very simple cobweb model, we demonstrate that exchange rate uncertainty fuel commodities' exports while futures market volatility could have a positive impact on the level of exports.
Keywords: Exports, exchange rate, futures prices, storage, physical trader
Q1 - Agriculture: General
Manuscript Received : Sep 24 2018 Manuscript Accepted : Sep 03 2019

  This abstract has been downloaded 933 times                The Full PDF of this paper has been downloaded 153794 times