Exchange rate volatility and exports: the case of Ireland

Fountas, Stilianos; Bredin, Don

doi:10.1080/758524405

Cited by 13 publications

(9 citation statements)

References 17 publications

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“…The latter value appears to be very large. Fountas and Bredin (1997) estimate short-run and long-run functions for Irish exports to the UK over the 1979-1993 period, i.e., since the collapse of the sterling link. The authors obtain long-run income and relative price elasticities equal to 5.75 and -4.73, respectively.…”

Section: Irish Evidencementioning

confidence: 99%

An Empirical Analysis of Short-run and Long-run Irish Export Functions: Does exchange rate volatility matter?

Bredin

Fountas

Murphy

2003

International Review of Applied Economics

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We analyse the long-run and short-run relationship between merchandise export volume and its determinants, foreign income, relative prices and exchange rate volatility, using the techniques of cointegration and error correction. The model was estimated for Irish exports and sectoral exports SITC 0-4 and SITC 5-8 to the EU using quarterly data for the period 1978-1998. The sectoral classification corresponds to the exports of mainly indigenous Irish firms and multinationals, respectively. We find that the exchange rate volatility has no effect on the volume of trade in the short-run but a significant positive effect in the long run. This is true in the aggregate and for our sectoral classifications. We can tentatively conclude that the decline in intra-EU exchange rate volatility associated with the single currency will lead to a long-run fall in Irish exports to the EU.

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Section: Irish Evidencementioning

confidence: 99%

An Empirical Analysis of Short-run and Long-run Irish Export Functions: Does exchange rate volatility matter?

Bredin

Fountas

Murphy

2003

International Review of Applied Economics

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“…The empirical results showed a negative link between exchange rate volatility and export volumes for Australia, Canada, and Japan and positive for United Kingdom, Sweden, and Netherlands. Fountas and Bredin (1998) showed that exchange rate volatility had short-run negative impact on real exports of Ireland to United Kingdom. Arize et al (2000) investigated real exchange rate volatility on the exports of 13 less developed countries using Johansen's multivariate procedure and error correction model.…”

Section: Review Of Literaturementioning

confidence: 99%

Exchange rate volatility and export growth in India: An ARDL bounds testing approach

Srinivasan¹,

Kalaivani²

2013

10.5267/j.dsl

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This paper empirically investigates the impact of exchange rate volatility on the real exports in India using the ARDL bounds testing procedure proposed by Pesaran et al. (2001). Using annual time series data, the empirical analyses has been carried out for the period 1970 to 2011. The study results confirm that real exports are cointegrated with exchange rate volatility, real exchange rate, gross domestic product and foreign economic activity. Our findings indicate that the exchange rate volatility has significant negative impact on real exports both in the short-run and long-run, implying that higher exchange rate fluctuation tends to reduce real exports in India. Besides, the real exchange rate has negative short-run and positive long-run effects on real exports. The empirical results reveal that GDP has a positive and significant impact on India's real exports in the long-run, but the impact turns out to be insignificant in the short-run. In addition, the foreign economic activity exerts significant negative and positive impact on real exports in the short-run and long-run, respectively.

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“…He argues that in case of risk averse exporters, the income effect can dominate the substitution effect of exchange rate risk, which in turn would encourage more exporting activities. Fountas & Bredin (1998) use a sample of quarterly data that span from 1979:Q2 to 1993:Q3 on the economy of Ireland to estimate short-run and long-run relationship between Ireland's real exports to the UK and exchange rate volatility measured by the moving standard deviation of the growth rate of Irish exchange rate. Using co-integration and VECM models, their results indicate a statistically insignificant relationship in the long-run and a negative effect of exchange rate volatility on real exports in the short-run.…”

Section: Exchange Rate Volatility and Export Performancementioning

confidence: 99%

Examining the nexus between exchange rate volatility and export performance: Empirical evidence from the Egyptian experience

Aly

Hosni

2018

BEH

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This paper investigates the relationship between exchange rate volatility and export performance of the Egyptian economy for the period (1980-2016). Moving average standard deviation and conditional standard deviation from GARCH model are used to generate two different measures of exchange rate volatility. The co-integration results indicate the existence of a unique long-run relationship between the real value of non-petroleum exports (as well as the volume of total exports) and the GARCH measure of exchange rate volatility. Using a Vector Error Correction Model, it is found that the volatility of the real effective exchange rate has a significant negative effect on real exports, whereas the effect of the level of real effective exchange rate itself, is not found to be statistically significant. Relevant policy implications are derived from these results.

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Exchange rate volatility and exports: the case of Ireland

Cited by 13 publications

References 17 publications

An Empirical Analysis of Short-run and Long-run Irish Export Functions: Does exchange rate volatility matter?

An Empirical Analysis of Short-run and Long-run Irish Export Functions: Does exchange rate volatility matter?

Exchange rate volatility and export growth in India: An ARDL bounds testing approach

Examining the nexus between exchange rate volatility and export performance: Empirical evidence from the Egyptian experience

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