The effects of exchange rate volatility on exports

Asseery, Ahmed. A. A.; Peel, David

doi:10.1016/0165-1765(91)90127-7

Cited by 207 publications

(117 citation statements)

References 5 publications

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“…Many research findings show that when exchange rate is highly volatile, then the volumes of goods traded will go down. "This is because in most international transactions, goods are delivered after a time gap and the contracts are denominated in terms of the currency of either the exporting or the importing country, and any unanticipated variation in exchange rates adversely affects the trade volume through their effects on income" [11].…”

Section: Literature Reviewmentioning

confidence: 99%

A VAR Approach to Exchange Rate and Economic Growth in Nigeria

Okonkwo¹,

Ujumadu²,

Osu³

2017

JMF

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Exchange rate is very pivotal in its role in the economy of any nation especially as a result of globalization. This paper seeks to model the Nigerian economy proxied by the log of Gross Domestic Product (LGDP) and its relationship with other variables in the economy. The variables used are NGN/USD exchange rate (NAIRA), log of oil revenue (LOILREV), log of government expenditure. We estimated the model using the Vector Autoregressive (VAR) model. We tested the presence or otherwise of causality among the variables using the method of Granger. The result reveals that the optimal lag for the model was 1. The exchange rate was found to Granger cause the economy (LGDP), LOILREV (Oil Revenue) and LGEXP (Government expenditure). We also discovered that the dynamics of NAIRA was not fully captured by the variables used. We also pointed out the shock persistence of NAIRA in time.

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Section: Literature Reviewmentioning

confidence: 99%

A VAR Approach to Exchange Rate and Economic Growth in Nigeria

Okonkwo¹,

Ujumadu²,

Osu³

2017

JMF

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“…Several empirical studies indeed confirm the view that exchange rate volatility reduces international trade flow (see, inter alia, Chowdhury, 1993;Arize, 1995Arize, , 1998and Arize et al, 2000). On the other hand, there are a number of papers which suggest that exchange rate volatility imposes a positive effect on international trade (see, Asseery and Peel, 1991;Franke, 1991;Giovannini, 1988;Sercu and Vanhulle, 1992;and Dellas and Zilberfarb, 1993). However, DeGrauwe (1988) argues that the relationship between exchange rate volatility and trade flow is analytically indeterminate.…”

Section: Introductionmentioning

confidence: 74%

UK imports, third country effect and the global financial crisis: Evidence from the asymmetric ARDL method

Choudhry

Hassan

Papadimitriou

2014

International Review of Financial Analysis

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This paper examines the role of exchange rate volatility in determining real imports. As a robustness check, it further explores the impact of the recent global financial crisis which is a period characterized by heightened exchange rate volatility. More specifically, we investigate the impact of exchange rate volatility on UK real imports from Germany, Japan and the US during the period January 1991 -March 2013. In contrast to most studies which focus on bilateral trade, we additionally explore the third country exchange rate volatility effect on UK imports. To capture the nonlinear features which often characterize macroeconomic data, we employ the asymmetric autoregressive distributed lag (ARDL) approach to cointegration. Our results suggest that exchange rate volatility plays an important role and reveal that there is a significant effect of the recent financial crisis on UK imports. This finding is consistent when we test for the third country volatility effect. Finally, we find that there is a significant causal relationship between exchange rate volatility and UK imports both in bilateral tests and in tests which account for the third country exchange rate volatility. JEL Classification: F1, F10Keywords: Real imports, Exchange Rate Volatility, Asymmetric Cointegration, Financial Crisis 1 We thank two anonymous referees for several useful comments and suggestions. We also thank the participants at

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“…The model has been extended in such a way to account for real exchange rate and its volatility (Asseery and Peel, 1991;Chowdhury, 1993;Cushman, 1983;Hooper and Kohlhagen, 1978;Kenen and Rodrik, 1986;Serenis and Tsounis, 2012). The model can be summarized by:…”

Section: Methodsmentioning

confidence: 99%

Demand for Egyptian Molasses in the World Market: a Panel Estimation

Alboghdady¹

2015

مجلة الإقتصاد الزراعى و التنمیة الریفیة

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Although Egypt is considered one of the most important export countries for molasses in the world market, Egyptian molasses export witnessed notable fluctuations during the last decade. Nevertheless, there is almost no study investigates and estimates the factors affecting its demand in the world market. The present study aims mainly toestimate demand function of the Egyptian molasses in the global market and in each individual importer market. Competitors' relative prices, income of import country, exchange rate of rival exporters, and volatility of relative prices and exchange rate were the proposed determinants of the exported quantity of Egyptian molasses in the global market. Random effects analysis was conducted to estimate the demand function using panel data of three importer countries during the period of 1986-20012. The results showed that Egypt/India price ratio, Egypt/Pakistan exchange rate, and pricesvolatilityare significantly affecting negativelythe Egyptian molasses exports. The results of the estimation of demand function for each importer country independently showed nearly the same conclusions with minor differences. The responsiveness of Egyptian molasses exports to UK, Italy, and Spain Markets to the price ratios were measured by the price ratios elasticities in each market. The elasticities of Egypt/Pakistan Price ratio showed highest elasticities in UK and Spain markets by 4.85% and 4.12%, respectively. The Egypt/India price elasticity was the highest in Italy market by -5.

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The effects of exchange rate volatility on exports

Cited by 207 publications

References 5 publications

A VAR Approach to Exchange Rate and Economic Growth in Nigeria

A VAR Approach to Exchange Rate and Economic Growth in Nigeria

UK imports, third country effect and the global financial crisis: Evidence from the asymmetric ARDL method

Demand for Egyptian Molasses in the World Market: a Panel Estimation

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