Impact Of Exchange Rate Variability Research Articles

Exchange Rate Variability and Exports: Evidence from Textile and Sports Goods Industries of Pakistan

The present study is different from previous studies in several aspects. Firstly, two different major sectors (Textile & Sports exports) of Pakistan exports are chosen to calculate the impact of exchange rate variability on these specific sectors instead of taking aggregate exports. Secondly, the aim of the study is not only to calculate effect of exchange rate variability on two sectors exports but also to check either two different sectors are affected same or different with this variation. Thirdly, annual data is taken for all the variables to check the correlation and to examine the impact of exchange rate variability on exports.This research also views the short-run characteristics by which exports meet on their long-run balance. This research is important since it has effects for the selection of exchange rate program and performs of interchange rate plan. Our commercial goods can contend besides endure in the international industry, on offering uniform-playing arena. Another slowing aspect is the failing of controlling department’s involved to develop a quick return program of sales tax.Simple regression model is used to examine the impact of exchange rate variability on Textile and sports goods exports individually as well as on aggregate of these two sectors of Pakistani Export.
 Keywords: Exchange Rate, Textile Exports, Sports Goods Exports

Impact of exchange-rate variability on commodity trade between U.S. and Germany

Previous studies that looked at the impact of exchange rate volatility on trade flows used aggregate trade data between one country and rest of the world or between two countries. More recent studies, however, have expanded the literature by using a highly disaggregated commodity level data between two countries. In this paper we consider the sensitivity of 131 industries that trade between U.S. and Germany. We find that exports and imports of a majority of the industries react to the real dollar–euro volatility in the short run. The short-run effects, however, last into the long run only in almost 50 % of the industries. Among these industries, while almost all U.S. exporting industries are affected favorably by exchange rate volatility, a majority of the U.S. importing industries are affected adversely.

The Impact of Exchange Rate Variability on Agricultural Exports of Developing Countries

This paper examines the impact of exchange rate and its volatility on the Turkish agricultural exports in the framework of error-correction model. The error correction model results indicate that except a few countries, the exchange rate and its variability do not have significant impact on Turkish exports of dried figs, grapes and tobacco. Thus, policies designed to increase the export level of Turkish agricultural products by incorporating weak Turkish lira against other currencies are not likely to be effective. The policy makers, therefore, should take into account the ineffectiveness of exchange rate on stimulating agricultural exports in their new policy designs.

On the Aggregate Impact of Exchange Rate Variability on EU Trade

Abstract The paper assesses the aggregate impact of exchange rate variability on EU trade. A small econometric model is constructed and estimated for five countries: France, Italy, Germany, the UK and Belgium. The results show that there exists a long-term relationship between trade variables and relative costs, demand, exchange rates and expected exchange rates. No such relation exists with respect to volatility. It is also found that while the most important determinants of trade variables are relative wages and demand, variability is also responsible for a decrease in the growth rate of these variables.

Exchange Rate Variability and China's Exports

This paper estimates the impact of exchange rate variability on total exports and exports of China by SITC category. Exchange rate variability is estimated by the conditional variance of the real effective exchange rate index from an autoregressive conditional heteroscedastic model. Test procedures that allow for multiple structural breaks are used to examine the stationarity property of variables and to test cointegration. Estimation results show that exchange rate variability has a long-run negative effect on total exports, exports of manufactured goods, and exports of mineral fuels. They support the hypothesis that exchange rate uncertainty impedes trade in China.J. Comp. Econom., March 2000, 28(1), pp. 61–79. The Chinese University of Hong Kong, Shatin, N.T., Hong Kong, China.

Germany’s stake in exchange rate stability

The position taken by politicians and important pressure groups in Germany concerning EMU will depend to a large extent on its labour market implications—and thus on the (perceived) impact of exchange rate variability on employment and unemployment. Most economists would assume this impact to be minor. The purpose of this paper is to show that this presumption might be wrong.

The impact of exchange rate variability on trade flows: Further results on sectoral U.S. imports from Canada

In this study, we provide additional empirical evidence on the effects of exchange rate variability on trade flows. We focus on trade between Canada and the United States in five sectors with substantial shares of bilateral trade between the two countries. Beside our sectoral approach, our contribution is to address econometric problems raised by the use of proxies for risk using the non-parametric approach suggested by Pagan and Ullah (1988). We adopt risk measures based on three-month forecast errors on the forward market. Our results generally indicate that exchange rate variability has not significantly depressed the volume of trade between Canada and the United States during the present floating rate period.

Trade and Investment Performance Under Floating Exchange Rates: The U.S. Experience

Contrary to the arguments of several scholars, we have failed to find either a conclusive theoretical case or clear empirical evidence of an effect, harmful or otherwise, of exchange rate variability (as measured by either short-terra volatility or long-run misalignment) on overall levels of international trade. In this paper, after reviewing the theories and evidence on this issue, we go on to consider the impact of exchange rate variability on direct foreign investment. We summarize and amplify upon the scant theoretical literature of this issue, and proceed to test U.S. data for the presence of such an impact. We find none.