Conditional exchange-rate volatility and the volume of foreign trade: evidence from seven industrialized countries.
A study was conducted to investigate the impact of exchange-rate volatility on real exports. An export demand function was estimated on quarterly export data for each of seven countries—Denmark, Germany, Italy, Japan, Switzerland, the U.K., and the U.S.—over the floating exchange-rate period. Evid...
| Publicado en: | Southern Economic Journal Vol. 64; pp. 235 - 255 |
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| Formato: | Artículo |
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Southern Economic Association
July 1997
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=513014831&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 513014831 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: July 1997 vid: 64 pid: 1482 pub: Southern Economic Association artinfo: ui: 513014831 10.2307/1061049 ppf: 235 ppct: 20 formats: tig: atl: Conditional exchange-rate volatility and the volume of foreign trade: evidence from seven industrialized countries. aug: au: Arize, Augustine C. su: Mathematical models of economics Commerce Foreign exchange Mathematical models Foreign exchange rates International trade sug: subj: Mathematical models of economics Commerce Foreign exchange Mathematical models Foreign exchange rates International trade ab: A study was conducted to investigate the impact of exchange-rate volatility on real exports. An export demand function was estimated on quarterly export data for each of seven countries—Denmark, Germany, Italy, Japan, Switzerland, the U.K., and the U.S.—over the floating exchange-rate period. Evidence strongly points to the presence of a single unit root in almost all variables at normal significance levels, a result consistent with the macroeconomic literature. Results suggest that a unique, statistically significant long-run relationship exists between real exports and exchange-rate volatility in each country. In addition, in most cases, exchange-rate volatility has a short-run effect on export volume. Results also indicate that the moving standard deviation of the growth rate of the exchange rate used in previous studies as a proxy for exchange-rate uncertainty does underestimate the effect of exchange-rate risk on trade flows. The most significant finding, however, is that exchange-rate volatility has a statistically significant negative impact on the real exports of all seven countries. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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