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Recent studies are assessing the impact of news‐based policy uncertainty measure on trade flows between countries. In this paper we add to this new literature by investigating the symmetric and asymmetric effects of Australian policy uncertainty index and the U.S. index on trade flows of 63 two‐digit industries that trade between the two countries. When we estimated a symmetric and linear model for each industry, we found short‐run effects of both uncertainty measures on 30% of the industries' trade flows. However, this number increased to 70% when an asymmetric and nonlinear model was estimated. The long‐run effects of both policy uncertainty followed similar pattern. Less than 10% of trade was affected by the estimates of the linear models. However, estimates of the nonlinear models predicted that 41.20% (26.53%) of the U.S. exports to Australia was affected by the U.S. uncertainty (Australian uncertainty). As for the Australian exports to the United States, 6.72% (5.5%) of its exports were affected by the changes in the U.S. policy uncertainty (Australian uncertainty). In almost all industries, increased uncertainty was found to hurt the trade and decreased uncertainty was found to boost it at different rate or asymmetrically. In sum, the U.S. and Australian policy uncertainty measure affects U.S. exports to Australia much more than they affect Australian exports to the United States. [ABSTRACT FROM AUTHOR]

Previous studies that assessed the impact of exchange rate volatility on Chinese trade flows reported mixed findings. They all have assumed that the effects are symmetric. In this paper, we investigate the possibility of asymmetric effects of the real yuan–dollar volatility on the trade flows of 84 2‐digit industries that trade between the two countries. We show that estimating asymmetric and nonlinear models for each industry yields much more significant outcomes than estimating symmetric and linear models. We find that trade flows of 2/3rd of industries are affected asymmetrically in the short run. Short‐run effects last into asymmetric adverse long‐run effects in 35 U.S. exporting industries (with export share of 45%) to China and in 44 Chinese exporting industries (with 76% export share) to the U.S. Since increased volatility hurts a significant share of both countries' exports, a stable yuan–dollar rate as well as inflation rate will benefit both countries in the long run. [ABSTRACT FROM AUTHOR]

Previous studies that investigated the impact of exchange rate volatility on Korean trade flows assumed that the effects are symmetric. When we change this assumption and investigate the asymmetric effects of the real won‐dollar volatility on 61 U.S. exporting industries to Korea and on 49 U.S. importing industries from Korea, we discover relatively more significant and asymmetric effects. Indeed, we find short‐run asymmetric effects in 37 U.S. exporting industries that last into significant long‐run asymmetric effects in 29 of them. We also find short‐run asymmetric effects on imports of 24 industries that last into significant long‐run asymmetric effects in 33 out of 49 industries. [ABSTRACT FROM AUTHOR]