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Exchange Rate And Determinants Of Exports In Periods Of Financial Volatility In The North America Free Trade Agreement Zone,Tipo De Cambio Y Determinantes De Las Exportaciones En Periodos De Volatilidad Financiera En La Zona Del Tratado De Libre Comercio De Norteamerica

Author

Listed:
  • Mario Alberto Lagunes Perez
  • Hector Hugo Perez Villarreal

Abstract

Ever since the implementation of the North America Free Trade Agreement or NAFTA, the nations that comprise it have experienced adverse economic and financial shocks. Starting with the 2008 financial crisis, there is an observable increase in the volatility of the real exchange rate in several nations, followed by an increasing amount of literature regarding the role of depreciation as a source of export competitiveness. The objective of this non-experimental, quantitative, descriptive and correlational research focuses on a methodological approximation to assess whether there is a statistically meaningful relationship between exchange rate and other variables that could affect the exports of NAFTA member countries, for which a GARCH (p, q) model is used. The results suggest that the real exchange rate of the Chinese Yuan, the income of the US and Chinese imports made by the region are the variables that best explain the behavior of exports of NAFTA members.

Suggested Citation

  • Mario Alberto Lagunes Perez & Hector Hugo Perez Villarreal, 2016. "Exchange Rate And Determinants Of Exports In Periods Of Financial Volatility In The North America Free Trade Agreement Zone,Tipo De Cambio Y Determinantes De Las Exportaciones En Periodos De Volatilidad Financiera En La Zona Del Tratado De Libre Come," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 9(2), pages 61-71.
    • Handle: RePEc:ibf:riafin:v:9:y:2016:i:2:p:61-71
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    References listed on IDEAS

    as
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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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