An Examination of the Impacts of Exchange Rate Volatility on Sectoral Trade in the Mercosur
This study captures the lack of macroeconomic policy coordination among Mercosur countries, through the impact of real bilateral exchange rate volatility on trade. A sectoral gravity model is estimated under two different measures of exchange rate volatility. Results show that the reduction in exchange rate volatility can increase bilateral trade.
|Date of creation:||2005|
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