Exchange Rate Effects on the U.S.–Canada Forest Product Trade: Are the Effects Asymmetric?

Up until now, relatively little attention has been given to the asymmetric effects of exchange rates on global trade flows of forest products. Thus, the primary thrust of this article is to probe the asymmetric influences exchange rate fluctuations have on bilateral trade flows of various forest products between the United States and Canada. We use the nonlinear autoregressive distributed lag (NARDL) method and discover strong evidence that the ups and downs of exchange rates appear to have asymmetric impacts on U.S. exports and imports of forest products in the long run. However, there is little evidence that the exchange rate asymmetry is present in the short run.