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misalignments. On average, exchange rate volatility has a negative (even if not large) impact on trade flows. The extent of this …, two main issues are investigated: the impact on international trade of exchange rate volatility and of currency …This paper surveys a wide body of economic literature on the relationship between currencies and trade. Specifically …
Persistent link: https://www.econbiz.de/10010326777
misalignments. On average, exchange rate volatility has a negative (even if not large) impact on trade flows. The extent of this …, two main issues are investigated: the impact on international trade of exchange rate volatility and of currency …This paper surveys a wide body of economic literature on the relationship between currencies and trade. Specifically …
Persistent link: https://www.econbiz.de/10010283586
We present, extend and estimate a model of international trade with firm heterogeneity in the tradition of Melitz (2003 … prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … naturally to a difference in differences estimation, with international differences in trade openness at the sector level …
Persistent link: https://www.econbiz.de/10011506613
We present, extend and estimate a model of international trade with firm heterogeneity in the tradition of Melitz (2003 … prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … naturally to a difference in differences estimation, with international differences in trade openness at the sector level …
Persistent link: https://www.econbiz.de/10011623991
aggregate regression specification that is consistent with bilateral trade flows micro-founded by the gravity equation. This … for this prediction from annual trade flow data. The difference between elasticities estimated on the bilateral and …
Persistent link: https://www.econbiz.de/10012000121
Exchange rate exposure of firms diminishes when imported intermediates and exports are denominated in currencies that move together. Appreciations of the domestic currency, raising foreign currency export prices, then also reduce marginal costs, allowing firms to counter the increase in foreign...
Persistent link: https://www.econbiz.de/10011568538
exchange rate is a strong source of uncertainty in import prices, exchange rate volatility has a negative effect on the demand … for imported durables. In an imperfectly competitive market, the volatility of the exchange rate is predicted to reduce …
Persistent link: https://www.econbiz.de/10014068232
Global capital flows into emerging markets, including those in Asia, continue to be volatile. These capital flows generate both benefits and costs. The latter are associated with episodes of currency and banking crises like the 1997 Asian financial crisis and the 2008 global financial and...
Persistent link: https://www.econbiz.de/10011386741
In this paper, we challenge the traditional assumption of a linear relationship between exchange rate volatility and … volatility positively and significantly influences economic growth when growth in government spending is below 6 percent. Above … this 6 percent threshold, volatility exerts an insignificant effect on economic growth. In light of the adoption of a free …
Persistent link: https://www.econbiz.de/10011870188
The relationship between volume and volatility has received much attention in the the literature of financial markets … the impact of volume on volatility in the the FX-market using a unique data set of daily trading in the Swedish krona (SEK … depict a positive correlation with volatility. However, the strength of the relationship depends on the instrument used and …
Persistent link: https://www.econbiz.de/10011539127