Exchange Rate Volatility and Trade among the Asia Pacific Countries
AbstractThe purpose of this paper is to investigate the impact of exchange rate volatility on exports among 14 Asia Pacific countries, where various measures to raise the intra-region trade are being implemented. The empirical tests using annual data for the period from 1980 to 2002 detect a significant negative impact of exchange rate volatility on the volume of exports. In addition, the test results indicate that the GDP of the importing country, the depreciation of the exporting countryâ€™s currency value, the use of the same language and the membership of APEC have positive impacts on exports, while the distance between trading countries have negative impacts.
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 724.
Date of creation: 11 Aug 2004
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Exchange rate volatility; Export; Asia Pacific region; APEC; Gravity model;
Find related papers by JEL classification:
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- F1 - International Economics - - Trade
- F3 - International Economics - - International Finance
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