Long-run Exchange Rate Sensitivity of Serbian Exports and Imports
Motivated by the theory that suggests that Serbian exporters bear a burden of “strong” dinar, this paper investigates the relationship between exchange rate and foreign trade. The contribution of this paper is the estimate of the long-run impact of exchange rate on exports and imports for several industry groups. The estimated elasticity of exports with respect to real exchange rate is about 0.5, suggesting that the potential changes in the exchange rate policy would yield relatively small benefits for exporters. On the other hand, long-run relationship of imports and the exchange rate is not confirmed, while the aggregate wages, salaries, and pensions have the strongest effect on imports in the long run.
|Date of creation:||Sep 2008|
|Contact details of provider:|| Postal: National Bank of Serbia, 12 Kralja Petra St, 11 000 Belgrade, Republic of Serbia|
Web page: http://www.nbs.rs
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:nsb:wpaper:16. 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: (Maja Mihovilovic)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.