Effective Exchange Rate Changes and their Impact on the Trade Balance
This study aims to analyse the impact of exchange rate changes on the trade balance, and to construct the effective exchange rate index using the simulated trade balance effects of the exchange rate changes as the weights. The study is divided into four sections. Section I reviews various indices of effective exchange rates, highlighting their uses and limitations. Section II presents a multilateral trade model appropriate to primary commodity exporting countries. The model is employed to analyse the effects of both the nominal and real exchange rate changes during 1971-1985 on the trade balance of Sri Lanka. The results are discussed in Section III. Section IV concludes the study highlighting the major observations, limitations and further research to be undertaken.
|This book is provided by South East Asian Central Banks (SEACEN) Research and Training Centre in its series Research Studies with number rp09 and published in 1988.|
|Contact details of provider:|| Postal: Level 5, Sasana Kijang, Bank Negara Malaysia, 2 Jalan Dato? Onn, 50480 Kuala Lumpur|
Phone: 603-9195 1888
Fax: 603-9195 1801
Web page: http://edirc.repec.org/data/seacemy.html
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sea:rstudy:rp09. 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: (Yunyee)
If references are entirely missing, you can add them using this form.