It is interesting to note that the vast majority of the past studies examined aggregate
trade flow data+ Bini-Smaghi ~1991! argues that the conflicting empirical evidence on the
impact of exchange rate uncertainty on trade may be due partly to the use of aggregated
data+ This is because the use of aggregate data unnecessarily, and perhaps erroneously,
assumes that income, price, and exchange rate elasticity estimates are equal across sectors+
If this assumption is incorrect, then the examination of aggregate trade data is likely
to dilute the true nature of the relationship and lessen the probability of obtaining accurate
empirical results+ It is more plausible to assume that the impact of exchange rate
volatility will differ across various tradable goods sectors ~or commodities!+