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The Impact of Exchange Rates and Their Volatility on Russia's Foreign Trade, Taking into Account its Membership in EAEU
[Влияние Обменных Курсов И Их Волатильности На Внешнюю Торговлю России С Учетом Её Членства В Еаэс]

Author

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  • Knobel, Alexander (Кнобель, Александр)

    () (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Chentsov, Alexander (Ченцов, Александр)

    () (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

The paper analyzes literature exploring the influence of exchange rate volatility on trade volume and it is shown that early estimates indicating a significant increase in trade between countries that are in currency unions are erroneous and are caused by a number of reasons related to the endogenous status of monetary unions and the existence trends in regression variables. One of the sections is devoted to a review of the literature on the general problems of the effects of exchange rates on trade; in it an extensive class of models describing consumers' demand for imported goods is considered. This is followed by a review of empirical studies, which, among other things, study the difference in the estimation of equations for cases of "small open economy" and "large open economy". In the practical part of the work, the influence of exchange rate volatility on the volume of trade is estimated using panel data for 214 countries of the world, using the proxy variable of the status of monetary unions.

Suggested Citation

  • Knobel, Alexander (Кнобель, Александр) & Chentsov, Alexander (Ченцов, Александр), 2018. "The Impact of Exchange Rates and Their Volatility on Russia's Foreign Trade, Taking into Account its Membership in EAEU [Влияние Обменных Курсов И Их Волатильности На Внешнюю Торговлю России С Учет," Working Papers 061824, Russian Presidential Academy of National Economy and Public Administration.
  • Handle: RePEc:rnp:wpaper:061824
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    References listed on IDEAS

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    Keywords

    Eurasion Economic Union; Integration policy; tariff and non-tariff barriers; volatility of exchange courses; international trade;
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