The effect of foreign currency borrowing and financial development on exports: a dynamic panel analysis on Asia-Pacific countries.

This paper examines the effect of foreign currency borrowing and financial development on exports. A balanced panel data is constructed for the selected 17 East Asian-Pacific countries, and the cointegration relationship among the variables of the export demand function is verified using Pedroni's h...

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Publicado en:Journal of the Asia Pacific Economy Vol. 18; no. 3; pp. 460 - 477
Autores principales: Tang, KinBoon, Tan, HuiBoon, Naseem, NiazAhmad Mohd
Formato: Artículo
Publicado: Taylor & Francis Ltd Aug2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1080/13547860.2012.742707
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        atl: The effect of foreign currency borrowing and financial development on exports: a dynamic panel analysis on Asia-Pacific countries.
      aug:
        au:
          Tang, KinBoon
          Tan, HuiBoon
          Naseem, NiazAhmad Mohd
        affil:
          Faculty of Arts and Social Sciences, Nottingham University Business School, The University of Nottingham Malaysia Campus, Jalan Broga, Semenyih, Selangor, Malaysia
          Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia, Selangor, Malaysia
      su:
        International trade
        Econometrics
        Financial crises
        Foreign exchange rates
        Capital movements
      sug:
        subj:
          International trade
          Econometrics
          Financial crises
          International Trade Financing
          Foreign exchange rates
          Capital movements
      keyword:
        C23
        export demand function
        F31
        F41
        financial development
        foreign currency borrowing
        panel cointegration
        C23
        export demand function
        F31
        F41
        financial development
        foreign currency borrowing
        panel cointegration
      ab: This paper examines the effect of foreign currency borrowing and financial development on exports. A balanced panel data is constructed for the selected 17 East Asian-Pacific countries, and the cointegration relationship among the variables of the export demand function is verified using Pedroni's heterogeneous panel cointegration tests. The empirical results indicate that the effect of foreign debt on exports is conditional on the magnitude of currency depreciation. The larger the depreciation of a currency, the more its exports are adversely affected by its foreign liability. This finding might be a possible explanation as to why large exchange rate depreciation during the 1997 financial crisis failed to generate the export boom. The results also show different effects of financial shocks on exports in these economies.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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