We use a gravity model to analyse the impact of exchange-rate volatility on the volume of bilateral international trade. Semiparametric regression methods are applied to the pooled data for over 200 countries. Our results indicate that volatility affects trade negatively although at very high...

This paper examines the impact that the European Union (EU) has exerted on Spanish economic activity. The empirical analysis is conducted using variance decompositions and historical decompositions derived from a near vector autoregressive (VAR) model. The near VAR includes the exchange rate,...