Abstract

AbstractThe contribution of the current article is to detect the asymmetric impact that exchange rate fluctuations have on Korea's trade with Vietnam. To this end, the nonlinear autoregressive distributed lag (NARDL) process is applied to export and import data disaggregated by 25 commodities. We uncover that the ups and downs of exchange rates have an asymmetric impact on some, though not all, types of Korea's commodities exported to and imported from Vietnam in both the long‐ and short‐run.

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