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Exchange rate depreciation and exports: the case of Singapore revisited

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  • WenShwo Fang
  • Stephen Miller

Abstract

This article revisits the weak relationship between exchange rate depreciation and exports for Singapore, using a bivariate generalized autoregressive conditional heteroscedasticity in mean model that simultaneously estimates time-varying risk. The evidence shows that depreciation does not significantly improve exports, but that exchange rate risk significantly impedes exports. In sum, Singaporean policy makers can better promote export growth by stabilizing the exchange rate rather than generating its depreciation.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438848
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 3 ()
Pages: 273-277

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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:273-277

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  1. Tilak Abeysinghe & Tan Lin Yeok, 1998. "Exchange rate appreciation and export competitiveness. The case of Singapore," Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 51-55.
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  17. Wen Shwo Fang & Henry Thompson, 2004. "Exchange Rate Risk And Export Revenue In Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 9(2), pages 117-129, 06.
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Citations

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Cited by:
  1. Fang, WenShwo & Lai, YiHao & Miller, Stephen M., 2009. "Does exchange rate risk affect exports asymmetrically? Asian evidence," Journal of International Money and Finance, Elsevier, vol. 28(2), pages 215-239, March.
  2. Longjiang Chen, 2011. "The effect of China's RMB exchange rate movement on its agricultural export: A case study of export to Japan," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(1), pages 26-41, January.
  3. Jiranyakul, Komain, 2010. "The Effects of Real Exchange Rate Volatility on Thailand's Exports to the United States and Japan under the Recent Float," MPRA Paper 45030, University Library of Munich, Germany.
  4. Brent Hudson & Richard Gerlach, 2008. "A Bayesian approach to relaxing parameter restrictions in multivariate GARCH models," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 17(3), pages 606-627, November.

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