This study examines the effect of exchange rate fluctuations on Korea׳s trade with the U.S. by taking the roles of exchange rate volatility and third country effects into account. An autoregressive distributed lag (ARDL) approach to cointegration is applied to estimate bilateral exports and...

The short- and long-run effects of exchange rates, income, interest rates and government spending on U.S. bilateral trade with the other G-7 countries are investigated using an autoregressive distributed lag (ARDL) model. The primary contribution of this study is to consider separating the...