Exchange rate uncertainty and export performance: what meta-analysis reveals?
Are exchange rate uncertainty affect export performance? This paper assesses this question using meta-analysis on a sample of 56 studies from 1984 to 2013 for the purpose of cumulating the findings across studies in order to reconcile the conflicting results of prior researches. The total sample meta-analysis lends stronger support of the association of risk aversion and hedging instruments with the controversial relation between exchange volatility and exports widely expected either theoretically or empirically. Then, subgroup meta- analysis is used to provide further evidence on the results already obtained by decomposing our sample into four subgroups depending to the nature of countries and the models explored to determine volatility. The evidence from subgroups is not supportive of this association. Furthermore and contrary to expectations, neither differential price volatility, nor asymmetry, nor nonlinearities are significantly linked to conflicting results.
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|Date of revision:||Aug 2013|
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