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On the Aggregate Impact of Exchange Rate Variability on EU Trade

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  • Khalid Sekkat

Abstract

The paper assesses the aggregate impact of exchange rate variability on EU trade. A small econometric model is constructed and estimated for five countries: France, Italy, Germany, the UK and Belgium. The results show that there exists a long‐term relationship between trade variables and relative costs, demand, exchange rates and expected exchange rates. No such relation exists with respect to volatility. It is also found that while the most important determinants of trade variables are relative wages and demand, variability is also responsible for a decrease in the growth rate of these variables.

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  • Khalid Sekkat, 2001. "On the Aggregate Impact of Exchange Rate Variability on EU Trade," German Economic Review, Verein für Socialpolitik, vol. 2(1), pages 57-78, February.
    • Handle: RePEc:bla:germec:v:2:y:2001:i:1:p:57-78
    DOI: 10.1111/1468-0475.00027
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    Cited by:

    1. Bouoiyour, Jamal & Selmi, Refk, 2015. "A synthesis of the effects of exchange rate uncertainty on international trade via Meta-Regression analysis," MPRA Paper 65737, University Library of Munich, Germany.
    2. David Kihangire, 2005. "The Effects Of Exchange Rate Variability On Exports: Evidence From Uganda (1988 – 2001)," International Trade 0505013, University Library of Munich, Germany.
    3. Bouoiyour, Jamal & Selmi, Refk, 2014. "How Does Exchange Rate Uncertainty interact with International Trade? A Meta-Analysis Revisited," MPRA Paper 56201, University Library of Munich, Germany.

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