The effect of real exchange rate uncertainty on LDC manufactured exports

Grobar, Lisa M.

doi:10.1016/0304-3878(93)90063-s

Cited by 58 publications

(46 citation statements)

References 7 publications

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“…Paredes (1989) found no significant link between export supply and exchange rate uncertainty for Chile and Peru. Grobar (1993) conducted a study to assess the impact of exchange rate volatility on export for ten developing countries (Argentina, Brazil, Colombo, Greece, Malaysia, Mexico, Philippines, South Africa, Thailand and Yugoslavia). The study lent support to the hypothesis that exchange rate volatility negatively affects exports.…”

Section: Previous Empirical Researchmentioning

confidence: 99%

Exchange Rates and Export Growth in Asian Economies

Mohamad¹,

Jusoff²

2009

ASS

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This paper discusses the impact of exchange rates on the export performance of selected Southeast Asian economies, namely, Indonesia, Malaysia, Singapore and Thailand. We construct an empirical model to account for the role of the real exchange rate and other economic fundamentals such as macroeconomic stability, terms of trade, capital goods investment, external demand and human capital. The study makes use of a panel data and estimates an export equation using a fixed effect model. The findings in this study strongly corroborate results from the theoretical framework that exchange rate misalignment and exchange rate variability have significant impacts on export performance. The study also finds evidence that the export growth path or these selected economies are dependent on global demand conditions, especially demand from OECD countries.

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Section: Previous Empirical Researchmentioning

confidence: 99%

Exchange Rates and Export Growth in Asian Economies

Mohamad¹,

Jusoff²

2009

ASS

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“…Paredes (1989) found no significant link between export supply and exchange rate uncertainty for Chile and Peru. Grobar (1993) conducted a study to assess the impact of exchange rate volatility on export for ten developing countries (Argentina, Brazil, Colombo, Greece, Malaysia, Mexico, Philippines, South Africa, Thailand and Yugoslavia). The study lends support to the hypothesis that exchange rate volatility negatively affects exports.…”

Section: Introductionmentioning

confidence: 99%

Exchange Rates and Export Competitiveness in Selected ASEAN Economies

Mohamad

Nair

Kamaruzaman

2009

IBR

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This paper discusses the impact of exchange rates on the export performance of selected ASEAN (Association of South East Asian Nations) economies, namely, Indonesia, Malaysia, Singapore and Thailand. We construct an empirical model to account for the role of the real exchange rate and other economic fundamentals such as macroeconomic stability, terms of trade, capital goods investment, external demand and human capital. This work also attempts to see if the higher import content industries (such as electronics and textile) are more affected by exchange rate changes than the more resource-based industries (such as wood and rubber). The study makes use of a panel data and estimates export equations using a fixed effect model both at the aggregate and sectoral levels. The findings in this study strongly corroborate results from the theoretical framework that the exchange rate misalignment and variability have significant impact on export performance, both at the aggregate and industry level. This work also gives evidence for the importance of capital goods machinery imports (technology) and the role of human capital. The study also finds that the export growth path for the selected ASEAN economies is dependent on global demand conditions, especially demand from OECD countries. However, there is no evidence to indicate that the exports from high-import content industries are more affected by exchange rate changes than the resource based industries.

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“…The scenario of export price uncertainty attributable to exchange rate uncertainty is one particular case which is of interest in three specific contexts: that of multinational firms, that of price discriminating firms in international trade, and that of developing nations looking to manufacturing exports as a stimulous to economic growth, as a foundation for development of an industrial sector, and as a means for acquiring foreign currency (see, e.g., Myers (1992), Sercu (1992), Grobar (1993)). Assuming some sellers to be risk averse and none to be risk preferring, extant theory would suggest, and Grobar (1993) has provided empirical evidence of, a negative relationship between exchange rate uncertainty and developing nations' exports; or in both principle and practice risk aversion leads to cautious behavior.…”

Section: Introductionmentioning

confidence: 99%

“…Assuming some sellers to be risk averse and none to be risk preferring, extant theory would suggest, and Grobar (1993) has provided empirical evidence of, a negative relationship between exchange rate uncertainty and developing nations' exports; or in both principle and practice risk aversion leads to cautious behavior.…”

Section: Introductionmentioning

confidence: 99%