Asymmetric Effects of Exchange Rate Volatility on Bilateral Trade Between Taiwan and Indonesia

Chien, Mei-Se; Setyowati, Nur; Cheng, Chih‐Yang

doi:10.1142/s021759082050006x

Cited by 11 publications

(7 citation statements)

References 40 publications

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“…Linha [8] examine "the impact of real effective exchange rate volatility on the trade balance in Vietnam from 2002 to 2019 by using the VAR (vector autoregression) model". Chien et al [9] they investigate "the effect of exchange rate volatility on bilateral trade between Taiwan and Indonesia via 19 export and import industries". Fofanah [10] was investigate "the Impact of real exchange rate fluctuations on aggregate cocoa and coffee exports in Sierra Leone".…”

Section: Literature Reviewmentioning

confidence: 99%

Analyzing the Impact of Exchange Rates on Trade Performance in Tanzania: A VECM Approach

Hafidh,

Soud

2024

AJEBA

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This paper investigates the relationship between exchange rates and trade performance in Tanzania using a Vector Error Correction Model (VECM) analysis. The background discusses the importance of exchange rates in international trade and how fluctuating exchange rates can impact trade performance. The methodology section explains the research design, model specification, and estimation techniques employed, such as unit root tests, co-integration analysis, and VECM. The findings highlight a long-run positive relationship between exchange rates, foreign direct investment, GDP, and labor forces with trade performance, while inflation rate shows a negative impact. Granger causality tests reveal causal relationships between different variables and trade performance. The conclusions suggest policy recommendations for the government to enhance trade performance through fiscal and monetary policies and encourage further research in the field.

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Section: Literature Reviewmentioning

confidence: 99%

Analyzing the Impact of Exchange Rates on Trade Performance in Tanzania: A VECM Approach

Hafidh,

Soud

2024

AJEBA

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“…Finally, the Autoregressive Distributed Lag (ARDL) models present a valuable and flexible framework for investigating both short-run and longrun dynamics in economic relationships (Bahmani-Oskooee et al (2012), Chen (2008), Sun and Chiu (2010)). Their non-linear variant (NARDL) takes a step further by addressing asymmetric effects, see Bahmani-Oskooee et al (2020), Baek and Nam (2021), Truong et al (2022), and Chien et al (2020).…”

Section: Introductionmentioning

confidence: 99%

Asymmetric Effects of Exchange Rate Volatility on Taiwan-China Trade: A Non-Linear ARDL Analysis of 20 Industries

Tetin,

Antonenko,

Nuryyev

2023

Bulletin of Applied Economics

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This study investigates the long-run and short-run effects of exchange rate volatility on Taiwan's exports to and imports from China across 20 industries, employing a non-linear autoregressive distributed lag (NARDL) approach. The analysis covers the period from January 2004 to December 2022 and highlights industry-specific sensitivities and asymmetric impacts of exchange rate fluctuations. Our findings reveal the critical role of exchange rate volatility in shaping export and import performance across industries, with both positive and negative shocks exerting significant short-run and long-run effects. Asymmetric impacts of exchange rate fluctuations affect 87.96% of Taiwan's total exports to China in the long run and 72.11% in the short run. In contrast, the asymmetric impacts on imports influence 77.12% of Taiwan's total imports from China in the long run and 13.21% in the short run, demonstrating varying sensitivity across industries. These findings accentuate the necessity for industry-tailored trade policies and strategic considerations to better manage the risks and opportunities presented by exchange rate volatility in cross-strait trade. JEL classification numbers: F14, F31, C22. Keywords: Exchange rate volatility, Taiwan-China trade, Non-linear ARDL, Asymmetric effects.

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“…Therefore, they react to negative shocks derived from ERV in a different way compared to positive shocks, thus resulting in asymmetric effects between ERV and TB (Dada, 2021). Although the symmetric effects of ERV on TB has been investigated in many studies, very little is known about the asymmetric effect of ERV on TB (Chien et al 2020). Moreover, few studies have investigated this issue for Vietnam, which presents characteristics of a transition economy consisting of high institutional uncertainties and a rapidly changing market information profile (see, for example, Vo and Le, 2017;Vo et al 2021).…”

Section: Introductionmentioning

confidence: 99%

The Asymmetric Effects of Exchange Rate Volatility on International Trade in a Transition Economy: The Case of Vietnam

Truong

2022

BEMP

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This study examines the asymmetric effects of Exchange Rate Volatility (ERV) on Vietnam’s international trade. Using time-series data fitted to the Nonlinear Autoregressive Distributed Lag (NARDL) model, we find that positive changes in ERV have a negative impact on the trade balance in the short-run. On the other hand,increases in ERV have a positive impact on the trade balance in the long-run. We also find that negative changes in ERV do not have any significant effect on the trade balance.

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Asymmetric Effects of Exchange Rate Volatility on Bilateral Trade Between Taiwan and Indonesia

Cited by 11 publications

References 40 publications

Analyzing the Impact of Exchange Rates on Trade Performance in Tanzania: A VECM Approach

Analyzing the Impact of Exchange Rates on Trade Performance in Tanzania: A VECM Approach

Asymmetric Effects of Exchange Rate Volatility on Taiwan-China Trade: A Non-Linear ARDL Analysis of 20 Industries

The Asymmetric Effects of Exchange Rate Volatility on International Trade in a Transition Economy: The Case of Vietnam

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