and export demand models), and econometric procedures (OLS; SUR; VAR; Co-

integration: Engle-Granger, Johansen). Despite of a vast literature on the matter, the

effect of floating exchange rates on trade remains controversial (Krugman and

Obstfeld, 2003). The findings support negative, positive, and zero effects. Hence

there is still need for more empirical evidence on this issue.

Arize et al., (2000) indicated that although there are many studies for

developed countries (e.g., Chowdhury (1993), Cushman (1988), Thursby and Thursby

(1987), and Kenen and Rodrik (1986)), more empirical analysis on the issue in

developing and emerging economies (e.g., Arize et. al., (2008), and Chit et al.,

(2010)) is needed in the literature. Arize et al., (2008) highlighted the need for more

studies for Latin American countries. A common factor in developing and emerging

economies is that the agricultural sector tend to be one of the pillars of their

economies. Cho et al., (2002) appeal for more studies in the understanding of the

effects of exchange rate volatility on agricultural exports. There have been

contributions from the agricultural economics profession using agricultural exports at

the aggregated and disaggregated levels (Coes (1981), Maskus (1986), Kumar (1992),

Cho et al., (2002), Giorgioni and Thompson (2002), Langley et at., (2003), Kandilov,

(2008), Erdal, et al., (2012)). Nevertheless, there are few studies for developing and

emerging economies using low frequency aggregated agricultural data (quarterly and

monthly).

Because exports are not only impacted by changes in relative prices and

volatility between trading partners, Cushman (1986) highlighted the need to consider

third country (competitors) exchange rate volatility. However, there are few studies