Exchange Rate Uncertainty and Export Performance: Supply and Demand Effects
Unpredictable fluctuations in the exchange rate can increase the uncertainty that suppliers face in overseas markets if contracts are written in foreign currency. There is an extensive literature on how the volatility of exchange rates can affect trade patterns. In this paper, the author does two things. First he examines how exchange rate uncertainty can affect both the supply of and demand for exports. He then uses a generalized ARCH process to represent the volatility of the exchange rate. Our results suggest that exchange rate volatility does have a role to play in explaining the supply of exports but does not have a significant effect on the demand for exports. However, the effect, though significant statistically, is small. Copyright 1995 by Scottish Economic Society.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 42 (1995)
Issue (Month): 4 (November)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0036-9292|
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0036-9292|
When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:42:y:1995:i:4:p:381-91. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.