“…Furthermore, the negative effects of the rising wave of globalization and financial integration for all open economies have resulted in exchange rate volatility with significant effect on their economic performance. Empirically, several studies have examined the relationship among exchange rate, exchange rate volatility and trade (Arize, Osang and Slottje, 2000; Behmani-Oskooee and Hegerty, 2008; Olayungbo, Yinusa and Akinlo, 2011; Wooi and Baharumshah, 2010;Aydin, 2010;Broda, 2003, Danmola, 2013, but these studies have generated mixed results. Furthermore, empirical literature shows that most of the panel studies on exchange rate volatility and trade are characterized by pooling of countries from different macro-economic environment together (see Kharroubi, 2011;Bleaney and Manuela, 2007;Aydin, 2010), and these tend to generate a bias result.…”